New York · Chapter 23 of 26
Commercial Leasing
Rentable, usable and carpetable square footage, loss and add-on factors, gross, net, office, retail percentage and loft leases, natural breakpoint, key lease clauses (use, attornment, estoppel, assignment and sublease, SNDA), electric service arrangements and escalation clauses including base year, expense stops, porter's wage and CPI.
45-minute read · Built for the Salesperson Exam
Measuring Commercial Space
Commercial rent is quoted per square foot per year (for example, $60 per square foot), so understanding how space is measured is essential. Usable square footage is the space the tenant actually occupies and uses exclusively. Rentable square footage is the usable area plus the tenant's proportionate share of the building's common areas, such as the lobby, corridors, restrooms, mechanical rooms and elevator lobbies; the tenant pays rent on rentable square feet. Carpetable square footage is the actual floor area that could be carpeted, excluding walls, columns and other obstructions, and is the smallest of the three.
Loading…