Commercial Real Estate Basics

Rentable Square Footage

The square footage figure a tenant's rent is actually calculated against — typically usable space plus a prorated share of common areas in multi-tenant buildings.

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Definition

Rentable square footage is the square footage figure a tenant's rent is calculated against, typically equal to usable square footage plus a prorated share of common areas in multi-tenant buildings. This is functionally the same concept as net rentable area, and the term you'll most commonly see referenced directly in a lease's rent calculation.

Rentable square footage in practice

In single-tenant industrial buildings, rentable square footage is often the same or very close to usable square footage, since there's minimal shared common area to allocate. In multi-tenant buildings, rentable square footage includes a load factor adjustment reflecting the tenant's proportional share of lobbies, shared hallways, or other common spaces — meaning your rent is calculated on more square footage than you can physically use exclusively.

What to watch for before committing

Measurement standard verification

Confirm which measurement standard, such as BOMA, the landlord used to calculate rentable square footage.

Load factor reasonableness

In multi-tenant buildings, compare the load factor applied against typical ranges for similar buildings.

Independent verification for significant leases

For significant leases, consider independently verifying rentable square footage rather than relying solely on landlord-provided figures.

Consistency across competing offers

Ensure you're comparing rentable square footage consistently across multiple building options during site selection.

Impact on total rent calculation

Calculate your total rent based on the actual rentable square footage figure specified in your lease, not just the usable space you'll occupy.

Single-tenant vs multi-tenant relevance

Recognize this distinction from usable square footage matters most in multi-tenant buildings, less so in single-tenant industrial space.

When you need to know this

  • Calculating total rent obligation — understanding what square footage figure your rent is actually based on
  • Comparing multi-tenant building options — normalizing rent comparisons that involve different load factors
  • Negotiating lease terms — verifying measurement methodology before agreeing to a specific figure
  • Evaluating lease accuracy — confirming quoted square footage figures match your actual measured space

Frequently asked questions

What is rentable square footage? +
Rentable square footage is the square footage figure a tenant's rent is calculated against, typically equal to usable square footage plus a prorated share of common areas in multi-tenant buildings.
Is rentable square footage the same as net rentable area? +
Yes, these terms are functionally synonymous, with rentable square footage being the term most commonly referenced directly in lease documents for rent calculation purposes.
Does rentable square footage always exceed usable square footage? +
In multi-tenant buildings, yes, typically, due to the common area load factor adjustment, while in single-tenant industrial buildings, rentable and usable square footage are often the same or very close.
How do I verify rentable square footage is accurate? +
Request the measurement standard and methodology used, and for significant leases, consider independent verification rather than relying solely on the landlord's representation.

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