Real Estate Definitions › Commercial Real Estate

Usable vs. Rentable Square Feet (Load Factor)

Outland and Associates Real EstateJames Outland, Broker AssociateDRE #01314390

What is Usable vs. Rentable Square Feet (Load Factor)?

Usable square feet is the space a commercial tenant actually occupies, while rentable square feet adds a share of common areas (lobbies, hallways, restrooms) and is what rent is charged on. The difference, expressed as the 'load factor' or 'common area factor,' means tenants pay for more than just their suite. Comparing load factors helps judge competing spaces fairly.

Example: A suite has 1,000 usable square feet but 1,150 rentable square feet due to a 15% load factor, so rent is charged on 1,150 — the extra reflects shared lobby and hallways.

Important Disclaimer

This definition is provided for general educational purposes only and is not legal, tax, or financial advice. Real estate laws and lending rules change and vary by situation. Before acting, consult a licensed attorney, CPA, lender, or other qualified professional in the State of California regarding your specific circumstances.

Copied