Rentable vs. Usable Square Footage

Category: business

The difference between the actual space a tenant occupies (Usable) and the space they pay for (Rentable).

Rentable space includes the Usable space *plus* a proportional share of the building’s common areas (lobbies, hallways). Tenants always pay rent based on the Rentable Square Footage, even though they only occupy the Usable space.

Common Examples

• The tenant’s usable square footage is 5,000, but with the building’s 15% load factor, their rentable square footage is calculated at 5,750.
• Understanding the difference between rentable and usable square footage is the first step in comparing commercial office leases.