Most office buildings have a load factor. This load factor is a percentage that describes the difference between the rentable and useable square footages for the building. The usable square footage of a building is all the square footage behind the front doors of the tenant’s suite; the space that is exclusive to them. The rentable square footage is the usable square footage plus the common areas. The common areas include the hallways, lobbies, elevators, stairwells and restrooms of the building. These areas are not exclusive to any one tenant, but are for the use all the tenants and their guests.
Let’s say the gross square footage of an office building is 100,000 square feet. The gross square footage of the building is everything contained within the exterior walls. Let’s say that the total square footage of the common areas of the building is 15,000 square feet. This leaves 85,000 sq.ft. of usable space (i.e. suites).
To calculate the load factor we take the total square footage of the common areas, (15,000 sq.ft.) and divide it by the gross square footage of the building, (100,000 sq.ft.). The formula looks like this:
15,000/100,000 = .15. Therefore, the load factor of the building is 15%.
Let’s see how the load factor relates to leasing space within the building. Let’s say that a tenant plans on leasing a suite with 1,200 square feet of usable space. Knowing that the load factor of the building is 15%, the tenant could then calculate the rentable square footage of the suite (1,200 + 15% = 1,380 sq.ft.). So if the monthly rent for the suite is $2.00 per square foot, the tenant’s total monthly rent would be $2,760.00:
(1,380 rentable sq.ft. x $2.00 per sq.ft.= $2,760.00).
The rentable square footage is always higher than the usable square footage because it includes both the tenant’s suite and their percentage of the common areas.
When shopping for space, it’s important for tenants to understand and compare the load factors of the buildings they may be interested in. Higher load factors mean that more of a tenant’s monthly rent will be dedicated to common areas and less to the suite they occupy. That being said, buildings with higher load factors often have amenities, such as spacious lobbies or atriums, which many tenants may find appealing.
Hi , I've taken a good look some things on this site and I really do think that it's helped a lot. There is still a lot I would like to learn so will continue to learn and can keep coming back. Thanks.
ReplyDeleteCommercial Investment Properties
Rubber mats could be made to become soft or even hard, with respect to the make utilization of. Softer rubberized tiles, such as those set up at play ground areas, assist minimize accidental injuries from drops or slides. Rubber Tiles
DeleteJohn's example, unfortunately, incorrectly calculates the load factor as 15%. In fact, the load factor is 1.17647, or 17.647%. If a single tenant took the 100,000SF space and added 15% to its 85,000SF (85,000 x 1.15(%) to arrive at its RSF, then the total square footage the tenant is paying for is only 97,750 SF. John should have taken the 85,000 and divided that into the total building square footage of 100,000 to arrive at the load factor. Load Factor = Usable Square footage divided by the building total square footage to arrive at the correct load factor. LF = USF/BTSF (where BTSF = building total square footage). Rentable Square Footage is calculated by dividing the Usable Square Footage by the Load Factor then adding it back to the Usable Square Footage. RSF = USF x LF + USF. 85,000 x .17647 = 15000 + 85,000 = 100,000
DeleteMatt Langenbach - you got the correct load factor but your formula is also wrong.
DeleteYour formula:
Usable SF (85k) ÷ Bldg Total SF (100k) = 0.85 Load factor. That's wrong.
The correct formula is:
Bldg Total SF (100k) ÷ Usable SF (85k) = 1.17647 Load factor.
This comment has been removed by the author.
ReplyDeleteDay or two gone by As i taken a great family home. When much time hunt I received Lynnpercell. They have perhaps various particular provide you with. With the intention that It looks like it is easy to get at their side.
ReplyDeleteThat I suggest everyone look at real estate St Charles Illinois
I believe that is among the so much significant information for
ReplyDeleteplug play office space for rent in bangalore . And i am glad studying your article. But should remark on few general issues, The website style is wonderful, the articles is in reality nice : D. Excellent activity, cheers
This is the good news.The information you provide is very useful for me.Thank you for sharing it.I will come to see if you have new post every day.
ReplyDeleteRES
I believe what is calculated in the article is loss factor instead of load factor. And tenants would want a lower load factor rather than a higher one.
ReplyDeleteVery significant article for us, I think the representation of this article is actually superb one. This is my first visit to your site.
ReplyDeleteYishun new condo
fully furnished office space for rent is a good option for those who search for office space,so that its ready to move in
ReplyDeleteHey hi. commercial office space for rent is a good website for office spaces I found.
ReplyDeleteI appreciate you sharing this blog..It’s very helpful for the people who are searching for this..commercial office space for rent in bangalore fully furnished office space for rent in Bangalore
ReplyDeleteThis comment has been removed by the author.
ReplyDeleteThis article is incorrect. It describes the Loss Factor, which is different than the Load Factor.
ReplyDeleteLoad Factor - In a lease, the load factor is the multiplier to a tenant's useable space that accounts for the tenant's proportionate share of the common area (restrooms, elevator lobby, mechanical rooms, etc.). The load factor is usually expressed as a percentage and ranges from a low of 5% for a full tenant to as high as 15% for a multi-tenant floor. Subtracting one (1) from the quotient of the rentable area divided by the useable area yields the Load Factor. At times confused with the "loss factor" which is the total rentable are of the full floor less the useable area divided by the rentable area. (If a full floor broken up into multiple tenancies has a useable area of 18,000 s.f. and a rentable area of 20,000 s.f., the load factor is 11.1% and the loss factor is 10%.
Thanks for nice sharing. You can also find best place to set up your office in IT Park is getting easy in Wardha IT Park. We also offer office commercial space for rent
ReplyDeleteThe information you have posted is very useful. The sites you have referred was good. Thanks for sharing..
ReplyDeleteplaces to rent
Very grateful to this blog for providing the great news about the difference between the rentable and usable load factor.
ReplyDeleteOffice Space in Bangalore | Furnish Office Space in Bangalore
Great information shared. Now a days people are looking for office commercial space for rent. So Wardha IT Park provides office area for lease at very reasonable costs.
ReplyDeleteJigsaw Perform ground pad tiles are in your doorway within two days in Uk. These tend to be dispatched within twenty four hours and are an absolute must have for your own play floor; these play ground tiles are simple to clean too. JIGSAW PLAYGROUND MAT TILES
ReplyDeleteCommercial leasing
ReplyDeleteis a process by which the trucker can be paid immediately after delivering the load he has just transported. Independent truck drivers or smaller companies hire a factoring company to handle the collections on invoices.
To be a successful commercial real estate investor, you have to know the lingo. One such term is "load factor," which is the difference between the usable and the rentable square footage of a building. Do you know how to calculate it?
ReplyDeleteoffice leasing
Freight Factoring is a process by which the trucker can be paid immediately after delivering the load he has just transported. Independent truck drivers or smaller companies hire a factoring company to handle the collections on invoices.medical office leasing
ReplyDeleteFor getting started with commercial real estate investing, you have to do a lot of spade work. Find out the amount of rent paid by the previous tenants. Check out about what kind of businesses flourish in this particular area, etc. If you spend some time on all
ReplyDeletethis and find out what it is that ticks in commercial real estate, then you will be profiting financially. see more, [http://www.jalilirealty.com] Commercial real estate
While looking for Luxury Real Estate in dove mountain, I dealt with Paul who was all business but nice enough and he promised to help me in finding a good one.
ReplyDeleteNice sharing information Square footage calculator
DeleteFor getting started with commercial real estate investing, you have to do a lot of spade work.
ReplyDeleteFind out the amount of rent paid by the previous tenants. Check out about what kind of businesses flourish in this particular area, etc.Please visit [http://www.jalilirealty.com] Commercial real estate
Nice post!! Thanks for sharing.
ReplyDeleteDermology anti aging Serum
dermology anti aging cream
Dermology
dermology hair removal cream
dermology hair removal cream
dermology hair removal cream
dermology cellulite cream
Xtreme No
Xtremeno
hgh energizer
This comment has been removed by the author.
ReplyDeleteThis problem is a result of the fact that there is a delay in the publication of the CPI. Rent Goa Villa
ReplyDeleteSuper information and than ks for sharing the details .
ReplyDeleteoffice space for rent in hebbal
Led by Certified Residential Appraiser and Inspector Adam Jurik, Empire Inspections and Appraisals is one of the largest firms in the Hudson Valley.
ReplyDeleteWe deliver quick turnarounds to all customers, such as home-owners, appraisal management companies, banks, realtors, attorneys, bail bondsmen, insurance companies and contractors.
Impeccable communication with lenders and clients has catapulted Empire Inspections and Appraisals to a top-rated appraisal and inspection firm in the Hudson Valley.
Sounds good.
ReplyDeleteNice blog. This article is very informative. Thanks for sharing this blog.Shared office space in Bangalore
Nice blog…
ReplyDeleteThanks for sharing…
Office Space, Furnished office, Commercial Space for rent in South Delhi,
This comment has been removed by the author.
ReplyDeleteMuch obliged to you for making things simpler for other people who are somewhat keen on adapting more about this, truly acknowledge for more points of interest
ReplyDeletehttps://www.thumbsup-realestate.com/blog/25.html
SpainForSale.Properties isan Exclusive Real Estate Agency offeringLuxurious Properties For Sale and Rentonthe Costa del Sol, such as: Luxury APARTMENTS FOR SALE IN MARBELLA
ReplyDeleteWow!!
ReplyDeleteAttractive blog. Thanks for sharing this wonderful information about "Commercial Real Estate". your information is helpful for all real estate investor. Keep it up.
Mortgage Calculator
Some areas of non-residential investment have been overbuilt, and I've forecast significant declines for investment in offices, malls, and lodging. Buy property in Calgary
ReplyDeleteThanks for this useful blog really very much informative one.
ReplyDeleteOffice space for rent in Chennai
Office space in Bangalore
Office Space for rent in Hyderabad
coworking space Mumbai
Congratulations! You have taken the first big step to becoming your own boss and going out on your own. You know your industry, how to build a brand and are very creative about the details of certain business affairs. However, many first time small business owner's fall short of putting systems into place to get the business moving in the right direction from the gate. This is where the smart business owner will save time, money and avoid inevitable pitfalls that plague many entrepreneurs the first time out by hiring a business coach. Metal Sheds
ReplyDeleteThanks for sharing .If you're planning to start a business in Chennai and looking for professional Business Center In Chennai can help you find a strategic business office address. They offers a wide range of serviced offices, office suites and tailormade office packages including business set-up services.
ReplyDeleteFully Furnished Office Space For Rent In Chennai
Co-Working Space In Chennai
Best Co-Working Space In Chennai
Private Office Space In Chennai
Office Space In Chennai
Shared Office Space For Rent In Chennai
Business Center In Chennai
Industrial factory for rent in Sahibabad Industrial Area site 4best location and best prices. Sahibabad Industrial Area shed on rent shed lease Sahibabad, site 4 shed rent Sahibabad factory lease.
ReplyDeleteFactory For Rent In Sahibabad Industrial Area
Are you looking for a business loan, personal loans, mortgage loans, car loans, student loans, unsecured loans for consolidation, project finance etc ... Or simply refuse loans from a bank or financial institution for one or more reasons? We are the right solutions for credit! We offer loans to companies and individuals with a low and affordable 2% interest rate. Therefore, if you are interested in an urgent and secured loan. For more information, please email us today: Via: Elegantloanfirm@hotmail.com.
ReplyDeleteThis comment has been removed by the author.
ReplyDeleteThe developers have prepared the first information about the construction process of the apartment at Avenir Condo Project in Singapore. Here you can learn more about homes for sale.
ReplyDeleteThat's a great article indeed, you can also check
ReplyDeleteCoworking office space
serviced office hyderabad
Serviced office chennai