Useable square footage is the space that is actually occupied by a tenant, typically equal to the size of the tenant’s suite, without deductions for columns or other structural elements. Useable square footage may differ from rentable square footage which accounts for a tenant’s share of common area.
For instance, an office tenant may occupy 25,000 useable square feet on a floor with 100,000 total useable square feet plus 10,000 square feet of corridors, bathrooms and other common areas. To calculate useable square footage in this case, there is a 10% floor common area factor (100,000 useable square feet plus 10,000 square feet common areas equals 110,000 rentable square feet divided by 100,000 useable square feet). Thus, the tenant may pay rent on 110% of their useable square footage, or 27,500 square feet in this case. Note that common area factors may apply to both individual floors as well as the building as a whole - this is known as the load factor. Office and retail properties often charge rent and/or charge CAM reimbursements based on rentable square footage as the tenants benefit from common space usage.
Realized1031.com is a website operated by Realized Technologies, LLC, a wholly owned subsidiary of Realized Holdings, Inc. (“Realized”). Securities offered on this website are offered exclusively through Thornhill Securities, Inc., a registered broker/dealer and member of FINRA/SIPC("Thornhill"). Investment advisory services are offered through Thornhill Securities, Inc. a registered investment adviser. Thornhill Securities, Inc. is a subsidiary of Realized. Check the background of this firm on FINRA's BrokerCheck.
Realized does not provide tax or legal advice. Tax topics discussed are for educational purposes only and are not a substitute for professional tax advice. You should discuss your personal situation with a tax or legal professional.
Hypothetical example(s) are for illustrative purposes only and are not intended to represent the past or future performance of any specific investment.
Investing in alternative assets involves higher risks than traditional investments and is suitable only for sophisticated investors. Alternative investments are often sold by prospectus that discloses all risks, fees, and expenses. They are not tax efficient and an investor should consult with his/her tax advisor prior to investing. Alternative investments have higher fees than traditional investments and they may also be highly leveraged and engage in speculative investment techniques, which can magnify the potential for investment loss or gain and should not be deemed a complete investment program. The value of the investment may fall as well as rise and investors may get back less than they invested.
This site is published for residents of the United States who are accredited investors only. Registered Representatives and Investment Advisor Representatives may only conduct business with residents of the states and jurisdictions in which they are properly registered. Therefore, a response to a request for information may be delayed until appropriate registration is obtained or exemption from registration is determined. Not all of the services referenced on this site are available in every state and through every representative listed. For additional information, please contact 877-797-1031 or email@example.com.