What is a standard common area factor?

In Leasing Property - Asked by CHRISTOPHER K. - Mar 5, 2010
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Answer(s)

Brian L.
Broker/Agent
Calgary, AB

The common area factor is a number which refers to shared spaces on a single floor, and within a building in its entirety. These spaces as previously mentioned can be a pro-rata share of tenant common areas such as restrooms and elevator lobbies, or main building lobbies and amenities which all tenants of the building use.

Mar 5, 2010
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Chris R.
Broker/Agent
Phoenix, AZ

I'm not sure about a "standard" rate, but we apply a 14.7% Load Factor to all of our suites. For example, one of our available spaces has a "usable area" of 2,127 sf, and "rentable area" of 2,440 sf ((2,127 gross sf) * (14.7% or .147) = 2,440 sf). That is a relatively average Load Factor. I'd be worried about anything higher than that, especially with property taxes continuing to increase in many areas, because your CAM (common area maintenance) reconciliations could get nasty.

Mar 5, 2010
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John P.
Broker/Agent
Millersville, MD

Careful though, some landlords prefer to imbed the "Core factor", "Load Factor" into the base rent. To be accurate the "core factor" is a question for the Owner/landlord. It can dramatically affect your marketing plan and "Base" asking Rental rate.

Mar 5, 2010
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Chris R.
Broker/Agent
Denton, TX

There is no real standard. Our local experience indicates a CAF or Core Factor ranges in the 10 - 17% range. Take the SQ FT of the space (usable) and multiply X the CAF to get the rentable. Allows for landlord to recoup shared use of such as hallways, stairwells, elevators, mechanical rooms, entry way, etc. that make up a typical building. Chris Rosprim, Scott Brown Commercial, Denton, TX

Mar 6, 2010
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Whit O.
Broker/Agent
South Glastonbury, CT

Varies considerably by building. A single story building will have a lower add-on or common area factor than a multi story building. A 15% add-on factor for a typical multi story building is not unreasonable, but low 20% is not unheard of.

Mar 8, 2010
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James H.
Broker/Agent
White House, TN

Common Area Factors include any areas that are common to multiple building occupants: building lobbies, restrooms, storage and utility closets, loading and staging areas, and others. Some broader definitions of Common Area Factors include areas for health clubs, cafeterias, meeting and conference areas, outside plazas, and others.
Common Area Factors vary from market to market and from building to building. In the northeast, Common Area Factors can range from as low as five percent (5%) in single story suburban office buildings to as high as twenty-five percent (25%) in suburban high-rise office buildings, to considerably higher rates of thirty-five percent (35%) or more in high-rise city office buildings.

Mar 8, 2010
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