09/30/2023
Our Calgary 100% Tenant Rep Partner points out some little known space facts that can cost or save you moneyl
"When comparing office space it is important to know the gross up or load factor (see below). Rates are usually quoted on the rentable area of the office space.
On a lease transaction of 10,000 rentable square feet, a tenant paying $20.00 per rentable square foot in a building with a 10% gross up or 1.10 load factor is actually paying closer to $22.00 per usable square foot because they occupy 9,090 sq. ft. (usable space)
A tenant paying $20.00 per rentable square foot in a building with a 20% gross up or 1.20 load factor is paying ~ $24.00 per usable square foot, because they are occupying only 8,333 sq. ft.
Over the course of a five year term that adds up to a $100,000.00 difference. Also consider that when operating costs are part of the equation the gap widens because they are also charged on the Rentable area of the office space. "
it is important to understand what the gross up factor means when leasing commercial real estate
