For office and medical condo sales. Is Gross or Net square footage typically used?

I know gross is typically used in leasing. Just curious what the industry standard for office/medical condo sales is.
Thanks!
In Buying Property - Asked by Jason M. - Mar 7, 2013
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Answer(s)

Ron R.
Broker/Agent
Scarsdale, NY

I believe that gross square footage is the best answer, provided that the loss factor (as a percentage of the total space) is disclosed. This would cover such item as the % share of the lobby, the rest rooms, the elevator and utility spaces in the building.
Ron Reid
RE/Max Prime Properties

Mar 8, 2013
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Rob B.
Chandler, AZ

Jason....
It is my belief that net square footage should be used in a sale. After all that is what the purchaser is buying, the actual footage that he will own independent of common area.
One of the first things I would do representing a buyer for comparable values, would be to convert the cost per square foot from gross to net usable, which would make the cost per square foot of purchase higher.
Conversely, in leasing such space, representing the Lessor of such space, I would convert from usable to gross square footage.
I suspect to answer your question that an appraiser would use Net square footage when looking at the value of the condo.
Onward and Upward....
Rob Baird
CA DRE 544165 (one of the oldest active licenses in the State)
AZ DRE BR 641305000
rob@capratecommercial.com

Mar 8, 2013
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Amos B.
Broker/Agent
Great Neck, NY

Jason, would agree with Ron -- away state the gross and then say the loss factor. As for quoting "rentable"(gross) vs. "Usable" (net loss factor) not sure what Rob means on a sale -- unless condo. Freestanding buildings always quote the gross -- no loss factor if purchaser is user.
Amos

Mar 11, 2013
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Rob B.
Chandler, AZ

Jason....
With regard to the question Amos posed about my previous answer, I believe your question was about "condo sales". Therefore the purpose of my answer.
Onward and Upward....
Rob Baird

Mar 12, 2013
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