Rentable vs useable square feet
Simply put, “rentable feet”refers to the amount of space you can rent out in a shared floor space. “Useable feet” is the amount of space you can actually use within the rentable feet.
Rentable feet can also include the common facilities of the building like the lobby, restrooms, and hallways.
Useable feet, on the other hand, does not include such facilities – unless you’re renting out the entire floor thatwill include such facilities. Think of the space you are eyeing as bowl. The bowl itself is what you will be paying for, while the holding capacity of the bowl is what you can use.
The Load Factor
Aside from knowing the difference between rentable feet and useable feet, one thing that you have to know is the load factor. This is simply the rentable square foot of the property over the useable square foot. Knowing this lets you understand just what you are paying for. Calculating for the load factor is simple:
Your agent should be able to provide this for you from the building’s owner. However, there are some cases wherethis is not correctly presented. And to make matters worse, it can sometimes add up to your costs.
As a future tenant, hiring an independent contractor to measure the commercial space you want is always a good idea. Reading the fine print of your lease is also an important step that no one should skip.
Study the details of your lease carefully and make sure that it is well worth the money you will be spending. Once the lease has been executed, there is little to nothing you can do to change it. By making sure beforehand that what you are paying for is well worth it, you are ensuring that you are making the right investment.