Rentable Area
Rentable area is the area used for rent calculations that includes a tenant's usable area plus a proportionate share of common areas, depending on the measurement standard applied. Explanations of BOMA-style measurement describe rentable area as exceeding usable area because it incorporates shared space costs.
- Where it applies
- Generally, not specific to New York
- When it comes up
- Leasing; underwriting; portfolio reporting
- Property types
- Office (primary); some other commercial
In practice
- Measurement standard selection (and how it treats particular building components) can materially affect economics per "rentable SF."
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)
- Load Factor (Common Area Factor / Loss Factor)
- Net Effective Rent (NER)
- Occupancy Cost
- Occupancy Cost Ratio
- Revenue Per Available Room (RevPAR)
- Sales per Square Foot
General information, not legal, tax or financial advice.