"Rentable" vs "Usable"
What is the difference
between rentable and usable square footage?
Rent is quoted in terms of rentable, not usable square footage. What does this
mean? The rentable area of virtually every office unit includes a large block
of square footage that cannot be used, or even found, but for which the tenant
is nevertheless charged rent.
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Rentable
Square Footage |
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| Equals the usable
square footage plus the tenant’s
pro-rata share of the Building Common
Areas, such as the lobby, public corridors,
and restrooms. |
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Usable
Square Footage |
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| The area contained
within the demising walls of the tenant
space, i.e., the space you occupy. |
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The percentage difference between the rentable
and usable area is known as the Loss Factor. There are
no exact standards for establishing loss factors in office
buildings. Landlords set their loss factors according to
what the market will bear. It is usually expressed as a
percentage, which can then be applied to the usable square
footage to determine the rentable square footage upon which
the tenant will pay rent.
A building with a high quoted rent, but a
lower loss factor, can actually be less expensive than
one with a low quoted rent, but a higher loss factor.
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What
is important to you?
Large Conference Room
Easy Elevator Access
Call Center Capabilities
Proximity to Major Highways
Break Room
Low rental rate
Located on a major highway
Located near your home
or customers
No hassle and minimal effort |
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