Load factor
The ratio of rentable to usable square feet, showing how much shared space is added to a tenant's suite. A 1.15 load factor means paying for 15% more space than you occupy.
Also called: add-on factor, loss factor, common area factor, core factor
Related terms
A tenant's usable space plus its share of building common areas like lobbies, corridors and restrooms. Commercial rent is usually charged on rentable, not usable, square feet.
The space a tenant actually occupies and uses inside its suite, not counting shared building areas. Comparing usable to rentable square feet shows how much of the rent pays for common space.
Property used for professional and administrative work, from small suites to high-rise towers. It is graded by class, leased by rentable square foot, and often uses full service gross leases.
The fixed rent in a commercial lease before any added charges like CAM, taxes or percentage rent. It is usually quoted per square foot per year and often rises by set amounts over the term.
Fees tenants pay for upkeep of shared areas like parking lots, lobbies, landscaping and security, usually split by each tenant's share of the space. Estimates are billed monthly and reconciled once a year.