The add-on factor is the percentage of a building’s gross usable space that is added to each tenant’s rented space to determine their total rent. The add-on factor plays an important role in setting lease rates, especially in commercial real estate.
What is a factor in real estate?
In short, the load factor is the percentage of space on a floor or building that is not usable and is expressed using the simple formula of rentable area divided by useable area minus one.
Are stairwells included in rentable square footage?
The rentable square footage of an office includes the usable square footage plus a percentage of the floor space of all shared areas in the building. Stairwells, communal restrooms, hallways, lobbies, cafeterias, gyms, and even on-site property management offices may be included in this calculation.
What does load factor mean in real estate?
A load factor, also known as a loss factor, is a metric that compares the amount of space a tenant pays for in a commercial lease versus the amount of space they actually use. The load factor or a commercial lease is calculated with the formula below: Rentable Square Feet/Usable Square Feet = Load Factor.
What does lease addon mean?
Lease addenda are separate documents that landlords add to an original lease agreement. Landlords use them to provide additional information that the original lease doesn’t cover. Be sure not to confuse addenda with lease amendments, which are changes made directly to the existing lease itself.
How is property load factor calculated?
Calculate load factor by dividing the total square footage in the building by the usable square footage. In this example, you would take 6500 square feet – the total square footage of the building – and divide it by 5500 – the usable square footage of the building. That gives us a load factor of 1.18.
How do you calculate load factor?
In simple words, the difference between the super built-up area and the carpet area is called loading. It can be calculated by a simple formula: Carpet area X (1- loading factor) = super built-up area. Let’s assume, the super built-up area of an apartment is 1,200 sq.
What is building load factor?
The load factor of the building is based on the percentage of common areas in a given building. The formula is: Building Rentable Square Feet / Building Usable Square Feet. Therefore, if Building A has a total square footage of 100,000 and 85,000 usable square footage, the load factor would be 1.15.
What is rentable factor?
Rentable square feet is the total area that you pay for. It includes an add-on factor (rentable factor) to account for common areas such as lobby, restrooms, etc. Each building has it’s own unique rentable factor and some buildings are more efficient than others. Make sure you know what that factor is.
How is loss factor calculated?
Mathematically, loss factor equals “the percentage difference between rentable area and usable area.” In other words, you can calculate loss factor by dividing the difference between the Rentable Square Footage (RSF) and the Usable Square Footage (USF) by the RSF.
How is Boma load factor calculated?
The building’s loss or load factor is equal to the common area divided by the usable area: 1450 divided by 8,300. This gives a load factor of 17.47%. This means that a tenant would pay their actual usable space plus 17.47%.
How do you calculate efficiency factor in real estate?
Efficiency factor is also referred to as (R/U) rentable/usable factor or core factor. To compute for it, divide the rentable square footage by the usable square footage. This is the portion of net rentable square feet dedicated to the common areas of a building.
What is an on Factor?
An add-on factor is a term that is often used in real estate circles and refers to the difference between the space that is considered rentable by the tenant and any space within the building that is considered unusable in terms of being limited to the private use of a single tenant.
Can I add my daughter to my lease?
A co-tenant addendum is simply a form of adding the child as an adult tenant, like a roommate. It essentially requires a full background check for the new addition, copies of identifying documents, and says in writing that the new adult will abide by all terms of the lease agreement, including financial.
How hard is it to add someone to a lease?
Adding someone to the lease while it’s ongoing is generally pretty difficult because landlords don’t like making lease modifications that expose them to additional risk. … Otherwise, they can live with you as an occupant—someone who occupies a rental unit without having signed a lease agreement with the landlord.