Why is Usable Square Feet (SF) less than Rentable Square Feet (RSF)?
Rentable Square Feet: Includes space allocated for common areas such as lobbies, stairwells, hallways, bathrooms and mechanical areas. Usable Square Feet, USF is the actual measurement of the space that the tenant will occupy. Rentable Square Feet RSF starts with the Usable Square feet and then the landlord adds a loss factor for hallways, elevators, stairways, lobby, mechanical rooms, etc and usually a profit factor. RSF is calculated differently by every landlord. Landlords set the rent on the RSF, based on Rentable Square Feet, which includes a shared allocation of space for common areas such as lobbies, stairwells, hallways, bathrooms and mechanical areas. Most tenants are interested in Usable Square Feet, the actual measurement of the space that the tenant will occupy. Based on the landlords RSF measurement, one can expect a minimum loss factor of 18-25% for a full floor and 30-40% for a multi-tenanted floor.
