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What Is The Load Factor And How To Calculate It

When you rent an office, you do not just rent the space, but you gain access to shared areas within the building like lobbies, hallways, restrooms. Landlords donu2019t allow you to use that space free of charge. Instead, they tack it onto the area that you rent as a ratio.<br><br>

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What Is The Load Factor And How To Calculate It

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  1. WHAT IS THE LOAD FACTOR AND HOW TO CALCULATE IT

  2. When you rent an office, you do not just rent the space, but you gain access to shared areas within the building like lobbies, hallways, restrooms. Landlords don’t allow you to use that space free of charge. Instead, they tack it onto the area that you rent as a ratio. Also mentioned as a core factor or a load factor, understanding your building’s load is vital to getting visibility into expenditure.

  3. What Is The Load Factor? Common areas are shared within the building that benefits each tenant (lobbies, shared restrooms, hallways, building amenities like fitness centers, etc.). Each tenant must buy their pro-rata share of a building’s common areas. In multi-tenant office buildings, rent is calculated by the square footage within the specific office suite, plus the tenant’s proportionate share of the common areas within the building, which is calculated using the ratio. And that ratio is termed as the load factor.

  4. How To Calculate The Load Factor? The ratio of the building is predicated on the share of common areas during a given structure. The formula is: Building Rentable Square Feet / Building Usable Square Feet

  5. For Inquiry Contact:- contact@medicalofficeproperty.com (855) 362-2569 For More Lease Information, Visit: medicalofficeproperty.com @medofficeproperty @medical_office_property

  6. THANK YOU!!

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