When you understand the difference between useable square feet vs rentable space, you can best evaluate a commercial lease. Listings generally feature rentable square footage, which includes more space than you will occupy.
So, how can you get the best deal for a great space? You need to first understand what kind of space you’ll get for the money.
Usable Square Feet
The area you will occupy while doing business qualifies as usable square feet.
Rentable Square Feet
An office building includes more space than just cubicles and private offices. Tenants will use meeting spaces, restrooms, corridors, lobbies and stairways. Because of this, landlords charge for this space as well.
When comparing usable square feet vs rentable, it comes down to one main difference:
Rentable square feet includes usable space plus a pro-rata share of common areas.
Pro-rata simply means that tenants pay based on the amount of space they’re renting. If you lease a larger space, you’ll pay more. The smaller your usable space, the less you pay. It is as simple as that.
Standard of Measurement
The Building Owners and Managers Association International (BOMA) works as the measurement standard. Most landlords use it when building lease agreements. Your lease will specify that it used these standards when measuring the space.
If you plan to rent a location, consider hiring an independent professional to verify the usable and rentable figures. It is important to insure that you are getting the most for your money. Even a small errors can create a high financial investment throughout the term of your lease.
Do you need help getting the best deal on an office space? Our world-class team represents you throughout the process. Contact us today to learn how we can serve you.
