Rentable area. How is this calculated?Rentable area. Tenants are often puzzled by the differing areas of space that are leased to them. Many in fact never realize that the usable area - the area that they actually occupy and use is not the area upon which they pay. Landlords routinely quote a larger figure for space to tenants seeking space in office buildings without mentioning that it is not the usable area. However this area is often grossed up (the gross-up) or loaded up (the load factor) both of which mean the saem thing, by a percentage factor. This gross up or load factor can differ from building to building or even floor to floor in a building as common areas including hallways are included in the gross up percentage. Spoace inefficent buildings with large lobbies or small floorplates or floors with lots of corridors can have less usable space than a more efficient building. This is why it's a good idea to have a floor plan drawn up which envisions your office setup before leasing space. Once building may turn out to have a lower rent but end up costing you more.
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