loss factor

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Common Area Defined


Common Area defined For lease purposes, common area is defined as the areas of a building that are available for the nonexclusive use of all its tenants, such as lobbies, corridors, and parking lots. Common Area Maintenance (CAM) Common Area Maintenance (CAM) charges are charges that are paid by the tenant for the upkeep of areas designated for use and benefit for all tenants.  CAM charges are common in commercial transactions and may include lobby areas, centralized bathrooms, parking lots and more.  Capital Improvements are commonly included within CAM charges when a tenant receives a statement from the landlord. Why does this matter [...]

Common Area Defined2017-10-14T13:49:53+00:00

What is Rentable Versus Usable SF


Loss Factor Loss factor is the square footage in an office or industrial building that is not usable by the tenant.  This includes common area, hallways, lobby areas, etc.  The way to determine the amount of rentable SF in an office building is by multiplying the space you want to lease by 1+ loss factor to go from usable SF to rentable SF.  An example is if you owned a (very small) 5,000 SF small office building and 500 SF was devoted to common area you have a 10% loss factor.   If a tenant wanted to lease 1000 SF in this [...]

What is Rentable Versus Usable SF2017-10-14T13:49:53+00:00