by Brad Lindberg, Senior Advisor | July 11, 2017
Renting commercial space in a multi-tenant building sometimes leads to some pretty confusing terminology. Specifically, the terms “Rentable” and “Useable” may be perplexing to a potential renter. What’s the difference?
Renters should be aware that renting space in a multi-tenant building means dealing with “common space”. Common space includes hallways, lobbies, public bathrooms and any area within the building that traffic flows through to get to the internal individual offices. The combination of all of this common space is referred to as the “core factor” of the building and is represented as a percentage of the whole building.
The “Useable” square footage is the actual physical space a Tenant will occupy and design planners calculate for placing office furniture. The “Rentable Square footage” is calculated on the “Useable Square Footage” plus the percentage of the building “Core Factor”.
For example, if the useable square footage is 1,000 square feet and the core factor is 15%, then the rentable square footage (i.e., what you’ll be paying for!) will be 1,150 square feet. This is the formula commonly used for calculating rent.
Renting commercial space can be confusing – if you’re looking to lease property, your office specialists at SVN Commercial Advisory Group are here to help.