What is considered rentable square footage?
Rentable square feet is defined as the usable square feet plus a portion of the building’s common space. Common spaces are areas usable by all tenants in the building and include, but are not limited to, hallways, lobbies, public restrooms and fitness facilities.
How is rentable space calculated?
The Rentable Area of an office on the floor is computed by multiplying the Usable Area of that office by the quotient of the division of the Floor Rentable Area of the floor by the Usable Area of the floor resulting in the FR/U Ratio.
What is included in rentable area?
This common area can consist of a lobby, restrooms, hallways, shared kitchen space, but can include any type of shared space between tenants. Common area factors usually consist of 10% – 20% of the total rentable square footage (we’ll get to what that means soon), but that can vary depending on the building’s layout.
What does rentable area mean?
Simply stated, rentable square footage is the area of the enclosed interior space of the building other than holes in the floor, such as stairwells, and elevator and mechanical duct space. If it’s floor that you can stand on, you pay for it, because it is rentable space.
What is meant by usable versus rentable space?
Usable square feet is the square footage in your commercial space that you can physically occupy – or use. Rentable square feet includes common areas like elevators, bathrooms and hallways, meaning you pay for these common area spaces as part of your rentable square feet.
How do you calculate rentable square footage of Boma?
The BOMA Standards provide two methods of calculating Rentable Area. Only one method should be used throughout the entire building. In both methods, calculating the Rentable Area requires multiplying the total floor area by a ratio that represents the tenant’s portion of the floor.
What is the difference between usable and rentable square footage?
How do you calculate net rentable square footage?
Now, to calculate the rentable square feet for an individual tenant in that building, you take the usable square feet (for example, let’s say this tenant has 10,000 usable square feet) and multiply it by the load factor of 1.25. The result is 12,500 rentable square feet for that tenant.
What is net rentable area?
What is NET RENTABLE AREA? Building’s actual square-unit ready for lease or rent to tenants. This is the area used to compute expected lease or rental payments. Common areas, elevator shafts, stairways, and space devoted to cooling, heating, or other equipment are typical excluded areas.
Why might the rentable square footage be greater than the usable square footage?
The increase in the rentable square footage above your usable square footage can be referred to as the “load factor,” “common area factor,” or “add-on factor.” This is generally in the 10-15% range and can be higher in some buildings.
What is rentable space?
Rentable square feet is a real estate term, usually used for commercial spaces, for the amount of square feet the rent is based on. This area includes space outside of the actual rented area including stairways, lobbies, corridors, etc…