What is Rentable Area?
A, This method measures the tenant’s pro-rata portion of the entire office floor, excluding elements of the building that penetrate through the floor to areas below. The Rentable Area of a building is fixed for the life of a building and is not affected by changes in corridor sizes and configuration. This method is therefore recommended for measuring the total income producing area of a building and for use in computing the tenant’s pro-rata share of a building for purposes of rent escalation. The Rentable Area of floor area shall be computed by measuring to the inside finished surface of the dominant portions of the permanent outer building walls, excluding any major vertical penetrations of the floor. No deduction shall be made for columns and projections necessary to the building. The Rentable Area of an office on the floor shall be computed by multiplying the Usable Area of that office by the quotient of the division of the Rentable Area of the floor by the Usable Area of the floor
The Rentable Area is the sum of the Usable Area and the proportionate shares of Floor Common Area and Building Common Area. When properly calculated, the sum of the rentable areas of all tenants in a building will equal the total square footage of the building excluding non-rentable areas such as elevators & stairwells. However, when artificial factors are used by the landlord, the sum of the tenants’ rentable areas will exceed the total square footage of the building.
Related Questions
- If a tenant expands its Rentable Area, does the Floor R/U Ratio and Building R/U Ratio change as a result -- meaning that each tenants Rentable Area would change?
- If a private stairway is built between two floors occupied by one tenant, is that stairway part of Rentable Area? Is it part of the Usable Area?
- How big does a dimensional error in locating the dominant surface have to be to result in a 2% error in Rentable Area?
