What is a core factor (AKA common area factor or add-on factor)? Also, what is the difference between usable and rentable square feet?
A core factor, also known as a common area factor or add-on factor, is a percentage that is added to the actual space that is being leased. It is used to account for portions of the building that are used in common by all tenants such as lobbies, bathrooms, sprinkler rooms, etc. A core factor is most common in multi-story office buildings, but it can exist in single story buildings as well. In most multi-story office buildings, the core factors will range from 12% to 13%, but some newer buildings have run as high as 15%. If a single story building has a core factor, it is typically a nominal percentage (less than 2%) to account for a sprinkler and/or electric room. As an example, in a building where there is a core factor of 13%, a tenant leasing a 10 x 10 room would be leasing 100 usable square feet, but 113 rentable square feet. Rent and all other charges would be based on the rentable square feet.
Related Questions
- Is storage space part of Building Common Area in a multi-tenant building? Is storage space Usable if it is for the express use of a given tenant?
- What is a core factor (AKA common area factor or add-on factor)? Also, what is the difference between usable and rentable square feet?
- What are rentable and usable square feet?
