1. What is Rentable Square Footage?

Rentable Square Footage is the total area for which a tenant pays rent, including both the usable space and a portion of the building's common areas. It's calculated by multiplying the usable square footage by the load factor.

2. How Does the Calculator Work?

The calculator uses the commercial real estate formula:

Where:

• \( \text{Usable Square Footage} \) — The actual space occupied by the tenant (sq ft)
• \( \text{Load Factor} \) — Ratio of rentable to usable space (unitless)

Explanation: The load factor accounts for shared building spaces like lobbies, restrooms, and hallways that tenants use but don't occupy exclusively.

3. Importance of Load Factor

Details: The load factor (sometimes called the "add-on factor") typically ranges from 1.10 to 1.20 (10-20%) in office buildings. Higher load factors mean tenants pay for more shared space relative to their actual occupied area.

4. Using the Calculator

Tips: Enter the usable square footage in square feet and the load factor as a decimal (e.g., 1.15 for 15%). Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between usable and rentable square footage?
A: Usable is the space you occupy; rentable includes your share of common areas. Rentable is always equal to or greater than usable.

Q2: How is load factor determined?
A: Load factor = (Total Building Area - Non-Rentable Area) / Total Usable Area. It's set by the building owner.

Q3: What's a typical load factor?
A: Office buildings usually have 10-20% load factors (1.10-1.20). High-rise buildings tend to have higher factors than low-rise.

Q4: Does rentable area include exterior walls?
A: Yes, rentable area typically measures to the exterior wall surface, while usable area measures to the interior surface.

Q5: Are there standards for measuring commercial space?
A: Yes, the BOMA (Building Owners and Managers Association) standards are most commonly used in North America.