What does Rentable Area include?

Rentable Area represents the total area that a tenant can lease, which includes both Usable Area and a proportionate share of the building's common spaces, such as hallways, restrooms, lobbies, and shared facilities. This concept is essential in commercial real estate as it determines how much space a tenant is actually renting and how costs are allocated.

Understanding the inclusivity of Rentable Area helps tenants assess their actual costs in relation to the space they are using versus what they are paying for. This is why Usable Area alone would not account for shared spaces and only includes the specific areas a tenant utilizes for their operations, making it insufficient for assessing total leasing costs. Similarly, focusing solely on the net assignable space misses out on shared areas, and considering the entire building floor area does not accurately reflect what part of that space is for tenant use or shared. Therefore, including both Usable Area and building common spaces provides a comprehensive view of what tenants are actually renting.