Usable area versus rentable area
Usable square feet generally describes the area occupied by the tenant. Rentable square feet adds the tenant's allocated share of building common areas under the measurement standard used for the property.
- Rentable area equals usable area multiplied by the rentable-to-usable ratio
- Load factor equals rentable area divided by usable area
- Common-area percentage can also be expressed as the amount above usable area
- Always compare proposals using the measurement method stated by each building
Why the factor affects rent
When rent is quoted per rentable square foot, two suites with similar usable areas can carry different stated rent because their building factors differ.
- Use the same factor definition across alternatives
- Verify whether balconies, shafts, amenities, and shared corridors are treated consistently
- Do not infer measured area from a marketing floor plan
- Use certified measurements for binding decisions
Key takeaways
- Rentable area can be estimated by multiplying usable area by the entered rentable-to-usable factor.
- The common-area percentage above usable area equals rentable area divided by usable area minus one.
- The governing lease and applicable measurement standard control the contractual area.