Rentable Area
Definition
The total area for which rent can be charged, comprising the usable area plus a proportionate share of common areas. This measurement includes both the exclusive use space allocated to tenants and their share of building common areas, calculated according to standardized methods.
Purpose
Determine rental charges, allocate building costs among tenants, and establish clear lease boundaries while ensuring fair distribution of common area costs.
Examples of Use
- Lease agreement preparation and negotiation.
- Property valuation and asset assessment.
- Service charge allocation and operating cost distribution.
- Space planning and tenant fit-out.
- Building efficiency analysis.
Related Terms
- Gross Leasable Area
- Usable Area
- Common Area Factor
- Net Rentable Area
- Load Factor
Notes
Rentable area calculations may vary by market and building type, but typically follow standardized measurement methods established by professional organizations.
