Load Factor (Common Area Factor / Loss Factor)
The load factor is the percentage of space on a floor that is not usable, expressed as a percent of usable area, and is also called the common area factor or loss factor. BOMA-style explanations describe it as driving the conversion from usable area to rentable area through an R/U ratio relationship.
- Where it applies
- Generally, not specific to New York
- When it comes up
- Leasing; underwriting; rent roll modeling
- Property types
- Office (primary)
In practice
- Load factor can vary by floor and by building; using a single "building-wide" load factor can misstate tenant economics in multi-floor analyses.
Related terms
Operating Performance Metrics
- Average Daily Rate (ADR)
- EBITDA Per Available Room (EBITDA PAR)
- Gross Operating Profit Per Available Room (GOPPAR)
- Labor Cost Per Available Room (LPAR)
- Net Effective Rent (NER)
- Occupancy Cost
- Occupancy Cost Ratio
- Rentable Area
- Revenue Per Available Room (RevPAR)
- Sales per Square Foot
General information, not legal, tax or financial advice.