# how is common area factored into a tenants rentable office space?

In Leasing Property - Asked by david n. - Feb 1, 2011

Jim T.
Owner/Investor
Abilene, TX

You would use a load factor or common area factor to adjust the usable square feet in order to get the rentable square feet. Let's say that the load factor for a building is 18%. You would then multiply the usable square feet by 1.18 (1+the load factor) to get the rentable square feet. A tenant with 1,000 USF would pay for 1,180 RSF.

Feb 1, 2011
Rob B.
Chandler, AZ

David....

Feb 1, 2011
thurlow & company - U.
Broker/Agent
San Antonio, TX

I would calculate total number of leasable square feet in your project, first. Than, what is your annual overhead (include maintenance and contingency). Than divide that figure by total square feet. This will give you an annual per square foot overhead. Now take that and multiply by the number of square feet in the space in question. This would give you the tenant's annual fee. Divide by twelve.
Of course local market conditions (competition) will ultimately dictate the actual tenant load.

Feb 2, 2011
Theodore B.
Broker/Agent
Houston, TX

Using an architect to determine the load factor will be money well spent in addition to being very helpful.

Feb 2, 2011
Ed B.
Broker/Agent
Denver, CO

Jim & Rob are both right but I'd go one step further and get the building measured and certified by an architect.

Feb 4, 2011
Pete A.
Broker/Agent
Indianapolis, IN

BOMA has standards that provide for the gross area to be recouped through renting the useable area of the building. I agree that an architect can help you determine your add on factor.

Feb 5, 2011