Load Factor (Core Factor)

Category: business

The percentage of space in a commercial building that is not usable by a specific tenant but is shared by all.

The load factor is the "common area tax." It’s calculated by dividing the Rentable Area by the Usable Area. A high load factor means the tenant is paying a lot of money for giant, fancy lobbies and wide hallways that they share with others.

Common Examples

• The Class A office tower has a high load factor of 20% due to its expansive glass atrium and large public conference center.
• When choosing an office, the tech startup opted for a building with a low load factor to maximize their actual workspace efficiency.