Usable and Rentable square feet are terms commonly used in the real estate and commercial leasing industry to describe different office or retail space measurements. These terms help property owners, tenants, and landlords understand how the space is allocated and what they pay for. Here’s the difference between the two:
- Usable Square Feet (USF): Usable square feet, also known as “usable area” or “net usable area,” refers to the actual space within a commercial property that can be used and occupied by the tenant. It includes the area the tenant can physically occupy, such as offices, workstations, conference rooms, restrooms, and any other functional areas within the space. Usable square feet do not include common areas, such as hallways, elevators, stairwells, or building amenities.
- Rentable sq. ft( RSF): Rentable sq. ft., also known as “rentable area” or “gross leasable area,” includes both the usable sq. ft. of the tenant’s space as well as a proportionate share of the common areas within the building. Common areas can include hallways, elevators, lobbies, restrooms, stairwells, and other shared spaces that benefit all tenants in the building. Rentable square feet take into account these shared areas because they contribute to the overall functionality and desirability of the building for tenants.
How to measure Office and Retail Square Footage
To calculate rentable sq. ft., the landlord allocates a portion of the building’s common areas to each tenant in proportion to the size of their usable space. The tenant pays rent based on the rentable square feet they occupy, as it includes both the actual usable space and a share of the common areas.
In summary, the key difference between rentable sq. ft. and usable sq. ft. is that usable square feet only consider the actual space a tenant can occupy, while rentable square feet include both the usable space and a proportionate share of common areas. Rentable square feet are used to calculate rent and determine lease terms in many commercial real estate leases.
Usable and Rentable square feet are terms commonly used in the real estate and commercial leasing industry to describe different office or retail space measurements. These terms help property owners, tenants, and landlords understand how the space is allocated and what they pay for. Here’s the difference between the two:
- Usable Square Feet (USF): Usable square feet, also known as “usable area” or “net usable area,” refers to the actual space within a commercial property that can be used and occupied by the tenant. It includes the area the tenant can physically occupy, such as offices, workstations, conference rooms, restrooms, and any other functional areas within the space. Usable square feet do not include common areas, such as hallways, elevators, stairwells, or building amenities.
- Rentable sq. ft( RSF): Rentable sq. ft., also known as “rentable area” or “gross leasable area,” includes both the usable sq. ft. of the tenant’s space as well as a proportionate share of the common areas within the building. Common areas can include hallways, elevators, lobbies, restrooms, stairwells, and other shared spaces that benefit all tenants in the building. Rentable square feet take into account these shared areas because they contribute to the overall functionality and desirability of the building for tenants.
Usable and Rentable Square Feet Explained
To calculate rentable sq. ft., the landlord allocates a portion of the building’s common areas to each tenant in proportion to the size of their usable space. The tenant pays rent based on the rentable square feet they occupy, as it includes both the actual usable space and a share of the common areas.
In summary, the key difference between rentable sq. ft. and usable sq. ft. is that usable square feet only consider the actual space a tenant can occupy, while rentable square feet include both the usable space and a proportionate share of common areas. Rentable square feet are used to calculate rent and determine lease terms in many commercial real estate leases.