Rentable Square Footage (RSF) vs. Usable Square Footage (USF)

Rent is quoted in terms of rentable, not usable square footage. The rentable area of virtually every office unit includes a portion of square footage that is used a part of the common area of the office building, for which the tenant is charged rent.

RSF - Equals the usable square footage plus the tenant’s pro-rata share of the Building Common Areas, such as the lobby, public corridors, and restrooms.

USF - The area contained within the demising walls of the tenant space, i.e., the space you occupy.

The percentage difference between the rentable and usable area is known as the Add On Factor (it has other names, too). There are exact standards for establishing the add on factor in office buildings. It is expressed as a percentage, which can then be applied to the usable square footage to determine the rentable square footage upon which the tenant will pay rent.

A building with a high quoted rent, but a lower add on factor, can actually be less expensive than one with a low quoted rent, but a higher loss factor.

For more information about the commercial leasing process, please fill out this form and request my booklet, "Business Guide To Securing Ideal Office Space" or just call our office at 512.275.1555 and we will get the guide to you.

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