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.

 

Understanding your real estate requirements is more than finding a property that you like. Understanding your business is the key to matching the functionality to your financial capabilities. It’s more than just a place to operate your business. It’s the key to your success. Brad understands business. As a former business owner in Sarasota, he had to make the tough decisions to grow the business while operating within a budget. For twenty five years, as a senior executive and managing partner in an international telecommunications distribution company, Brad had responsibilities for operations, site evaluations, relocation’s and business evaluations. For the last eight years he has taken that valuable experience and applied it to the commercial real estate industry, giving his clients a perspective to their business and helping them make the solid decisions that is right for their business.
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