Unlocking the Mystery Between Usable vs. Rentable Square Feet

Usable vs. Rentable Square Footage: Understanding What You Pay For in 2024

Finding the perfect office space goes beyond location and price. Understanding the difference between usable and rentable square footage is crucial to optimizing your lease agreement and budget.

Usable vs. Rentable: What’s the Difference?

• Usable Square Footage (USF):  This refers to the physical space you occupy within your leased suite. Think of it as the area your desks, furniture, and equipment fit comfortably within.
• Rentable Square Footage (RSF):  This encompasses your usable space plus your pro-rated share of the building’s common areas.  Common areas include hallways, lobbies, restrooms, elevators, stairwells, and even amenities like gyms or conference rooms.  Essentially, it’s the total space you pay rent for in your lease.

The Load Factor: Calculating Your True Footprint

The discrepancy between usable and rentable footage is called the load factor. This percentage typically falls between 12% and 25%, with high-rise buildings having a higher load factor due to more extensive common areas.

Here’s how to calculate the load factor and rentable square footage:

• Example: You lease 15,000 square feet of usable space (USF) in a high-rise with a 18% load factor.
• Rentable Square Footage (RSF) Calculation:  RSF = 15,000 USF x (1 + Load Factor) = 15,000 USF x (1 + 0.18) = 17,700 RSF

Understanding BOMA Standards

The Building Owners and Managers Association (BOMA) establishes industry standards for measuring commercial real estate, ensuring consistency across lease agreements.

High Load Factors: Weighing the Costs and Benefits

A higher load factor means more common area amenities, potentially impacting your rent. Consider the following factors:

• Benefits:  High-rise buildings often offer amenities like gyms, conference rooms, and grand lobbies, which can enhance your company image and employee experience.
• Costs:  While these amenities can be valuable, they also contribute to a higher load factor and, consequently, a higher rent.

Choosing the Right Fit

Evaluate your business needs. Does your company prioritize modern amenities or a lower rental cost?

• High-Rise Option: Ideal if a sleek, amenity-rich environment is crucial for your brand.
• Low-Rise Option: A garden-style building with fewer common areas may be more cost-effective if functionality is your priority.
  

Don’t Go It Alone: Partner with a Tenant Representative

Negotiating a commercial lease involves complex calculations and considerations. A skilled tenant representative can help you:

• Secure the Best Deal: Ensure you’re paying a fair price based on accurate usable and rentable square footage calculations.
• Navigate BOMA Standards: Understand how these standards impact your lease agreement.
• Evaluate Load Factor: Weigh the cost-benefit of various building options based on your needs.

By partnering with a tenant representative like Mazirow Commercial, you can secure a lease that meets your spatial and budgetary requirements, allowing you to focus on running your business.

Don’t Go It Alone: Secure Your Competitive Advantage with Mazirow Commercial 

Mazirow Commercial is your ally in the commercial leasing game. With our expertise on your side, you can transform your lease negotiation from a David vs. Goliath battle into a strategic win for your business. Call us at (805) 449-1945 for a consultation!

Mazirow Commercial Represents Commercial Tenants and Buyers Throughout Southern California:

Agoura, Beverly Hills, Brentwood, Burbank, Calabasas, Camarillo, Encino, Glendale, Oxnard, Pasadena, Santa Barbara, Santa Monica, Sherman Oaks, Studio City, Tarzana, Thousand Oaks, Ventura, West Los Angeles, Westlake Village, Westwood, Woodland Hills