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When a leased space in an office building consists of one or a few rooms, a relatively small space that the tenant can that can be easily measured by the tenant.
January 01, 2004 -- For the tenant who is leasing a large amount of space, whether full floors or otherwise, the description of the leased premises is a more complicated matter, identifying the difference between rentable and usable space.
When establishing the square footage for the lease, the floor size should be determined to establish gross construction area, usable area, and rentable area. Here are the standards established by The Building Owners and Managers Association (BOMA).
Gross Construction Area.
Under the BOMA formula, the gross construction area is determined by computing the entire square footage within the floor's perimeter. The gross construction area must be determined, even though it is not used in leasing, because it affects the cost of tenant installations.
Usable Area.
On a multi-tenant floor, usable area is gross construction area minus core space. Core space includes the square footage used for public corridors, stairways, bathrooms, elevators, electrical and janitorial closets, and a fan room. On a floor occupied by a single tenant, corridors and bathrooms are considered part of the usable area.
Rentable Area.
It is a generally accepted formula that a proportionate share of core space is added to the usable space of each tenant on the floor. The public elevators and stair space are usually excluded in making these calculations. In buildings where the heating, ventilating, and air-conditioning (HVAC) system is located in the basement or on the roof, the rentable area is identical with the usable area. However, in some office buildings, the HVAC may occupy one or more floors between the basement and the roof. This space is, of course, not rentable, but its gross construction area is apportioned to the rentable office floors serviced by the HVAC equipment and is considered part of their rentable area.
BOMA formulas apply equally to old and new buildings. Where BOMA standards are not adhered to, the measurement formula commonly employed in the locality should be used. |
