What's the Difference Between Rentable and Usable SF?
Usable square footage refers to the actual space a tenant can occupy and use within their suite or office, excluding common areas like lobbies, hallways, and restrooms. Rentable square footage includes both the usable space and a proportionate share of the building’s common areas, meaning tenants pay rent on more space than they physically use. The difference between the two is captured by the load factor, which helps landlords allocate costs of shared spaces among tenants.
Definitions
Load Factor = Rentable Sq Ft / Usable Sq Ft
Example
In this case, the tenant occupies 5,000 sq ft but pays rent on 6,000 sq ft due to the building’s 1.20 load factor.