Understanding how Rentable Square Feet Works 2020

Understanding how Rentable Square Feet Works 2020
Understanding How Rentable Square Feet Works 2020
Understanding How Rentable Square Feet Works 2020

This article clears up the confusion on what Rentable square footage means and shows you how to get more space for less money. There are two things that confuse people about Rentable square feet.

 

  1. Many people think that Rentable square footage is just the measurement of the office unit itself but, it’s not. This is what’s hidden, Rentable square feet has 2 measurements.

 

  1. The measurement of the office unit. (Usable square feet)
  2. The measurement of common area space. (Loss factor percentage)

 

I’ll give you an example:

 

Rentable square feet = 2 measurements.

 

  1. Office space unit (Usable square feet)
  2. Common Area space (Loss factor or Core factor)

 

1,500 USF (Usable square feet)

+500 Common area space (Loss factor or core factor)

= 2,000 RSF (Rentable sq. ft.)

 

  1. The second thing that confuses people about rentable square feet. Rentable square feet are also known as the advertised square footage but keep in mind that it is not usually labeled as Rentable square feet.

 

So, the next time you see an advertisement for office space know that it is the Rentable square feet because it’s the amount of square footage that the rent is calculated on.

 

As a bonus, I am going to show you how to get more space for less money. When comparing spaces compare spaces based on the Usable square feet instead of the Rentable square feet.

 

 

I will give you an example on how to compare spaces based on the Usable square footage instead of the Rentable square footage.

 

When comparing space in this case I’ll use 2 spaces, space A and space B.

 

Space A                                      VS.               Space B

2,000 RSF                                                        2,000 RSF

1,500 USF (75%)                                            1,300 USF (65%)

500 Common area (25%)                              700 Common area (35%)

 

Which space would you select? Obviously, if both spaces are similar in every regard except for the Usable square feet. I would pick space A because it has more Usable square footage within the office unit itself.

If you would like to see a quick video describing on understanding how Rentable square feet works then click on the following link. Click here to watch the video titled Understanding How Rentable Square feet works 2020.

 

Best,

Roy Somwaru

www.skynyrealty.com

Understanding How Rentable Square Feet Works 2020
Understanding How Rentable Square Feet Works 2020
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    Contact Number:   212-335-0194



    Contact Number:   212-335-0194