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.
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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