|
| How Space is Measured |
| |
While all properties use square footage as the basis of measurement, different parts of the property included in the final measurements vary by building type. Gross square footage is typically used with warehouses, industrial buildings, and other stand-alone buildings, i.e., freestanding retail sites. Typically, the calculation will include the thickness of the sidewalls when measuring the total footprint of the site. When measuring a multi-tenant warehouse, industrial, or retail property, the inside measurement may be the most appropriate. This measurement will include 50% of the thickness of any demising walls.
Office buildings use substantially different calculations. The actual square footage that an office tenant may occupy is typically less than the amount upon which the rent is based. The square footage an office tenant may use exclusively is termed "usable square feet" and the amount upon which the rent is based is termed "rentable square feet". Office tenants pay a proportionate share for their use of building common areas Common areas include lobbies, hallways, rest rooms, and service areas. This differential is expressed as a percentage known as a load or loss-factor. When comparing properties, it's a good idea to ask, "What is the load factor?" The higher the load factor the more of an office tenant's space will be in the common areas and less inside the suite for its exclusive use. Occasionally, one may find a building that bases the rent upon the usable square footage. Since load factors typically run from 17 to 22 percent, this may represent real savings.
|
|
