Useable Square footage vs. Rentable Square Footage

Commercial office leases are quoted in terms of "Rentable Square Feet", not "Useable Square Feet".  The rentable area of virtually every office includes a portion the common area, for which the tenant is charged rent.   

Useable Square Feet
Simply put, usable square footage means the square feet used directly and exclusively by the tenant. It does not include common area square footage.  Usable square feet includes private (tenant-only) rest rooms, closets, storage and any other areas used only by the tenant.

Rentable Square Feet
Rentable square footage is usable square footage plus a prorata share of the building's common area.  Theoretically, rentable square footage should be the amount of building space from which the tenant benefits.  Most office buildings have common areas not directly and exclusively used by the tenant, but nonetheless benefiting the tenant (e.g., hallways, stairways, lobbies, etc.).  

Business owners should obtain the services of a tenant representation broker to help with translate these and other convoluted definitions into real dollars and cents prices, allowing for an apples-to-apples comparison of alternative properties. 

Troy Golden is President of Golden Group Real Estate. He received his undergraduate degree from Yale University and his MBA in Real Estate from the Wisconsin School of Business. Troy specializes in commercial office brokerage in Chicagoland. Please contact him at troy@goldengroupcre.com or (630) 805-2463.