how do you get the percent for the common area factor for a 6 story office building?

For example, if i was leasing out a suite on the 4th floor, do I calculate the whole building hallway area or only the 4th floor hall way area? Same with the bathrooms, 4th floor or all floors? and what about the stair wells 4th floor only or all floors?
In Leasing Property - Asked by john k. - Mar 29, 2010

Paul F.
Owner/Investor
Novi, MI

This should be defined in the lease. Typically the common area factor would be your suite/entire building. However I have seen leases with as much as a 15% "add on factor" That means the formula would be your suite/entire building times 115%. Landlords do this to get back some of the costs for the hallways, elevators, bathrooms, etc.

Mar 30, 2010
Brandi L.
Broker/Agent
Oak Brook, IL

Whole building. As Bill stated, this should be clearly defined in the lease. Most office properties subscribe to BOMA standards. Descriptions and formulas are summarized in the following link.
Jim Blanchard-Inland Real Estate
jblanchard@inlandgroup.com

Mar 30, 2010
John G.
Broker/Agent
Newport Beach, CA

factor in 15% for the load

Mar 30, 2010
Coy D.
Broker/Agent
Houston, TX

You might want to read my Blog Post in which I discussed this exact subject

Mar 31, 2010
Gary T.
Broker/Agent
Tempe, AZ

Everyone is fairly correct. You asked about load factor for a 6 story building. Most landlords do it by floors. So if you have a 6 story buidling that is 60,000 sf. You have 10,000 sf per floor. Let's say you have 9 1000 sf suites, then the remaining 1000 sf (Hallway, waiting area, bathroom, kitchen, etc) is divided between the 9 other suites. This is done if they are rented or not. So, the lease is written as 1000 sf with an 11% load factor and price out at \$XXX/sf times 1110 sf. Now, you may have to add more, if for instance, that the bottom floor is a reception area or other use that is used by the entire building. The other option is to do the entire building, but it should come out close to the same thing.

Apr 1, 2010