 Market
Knowledge
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What is the difference
between rentable and usable square footage?
Usable area is the area actually occupied by
the tenant and not shared with other tenants or building
services. Rentable area is the usable area plus the
tenant's share of common areas and is generally the area
upon which a tenant's rent is calculated. The load
factor is simply the ratio between the usable and
rentable areas or the factor by which the usable area is
increased to obtain the rentable area. Depending on the
current market conditions, the load factor may change.
In a weak market, Landlords will often discount their
load factors to lower factors to be more in line with
competing buildings. In a strong market, Landlords can
choose to quote artificially high load factor to
maximize their gains. |
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Reserved
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