Useable and Rentable are both used to describe the number of square feet (SF) in a lease space. Useable is the space that is actually available for the tenant to use exclusively. This is space in which you can put desks, employees, files, conference rooms, merchandise, etc.
Rentable, on the other hand, is the amount of space for which you pay rent. Shouldn't these two numbers be the same? Well in a retail space, flex buildings, or office condos, they usually are the same.
But if you are in a multi-tenant office building, you share common areas like restrooms, elevator lobbies, electrical rooms and corridors with other tenants. So a small portion of those common areas - also known as the "building core" - is added to each lease.
You may have heard the term "core factor" or "add-on factor" used. This is simply the percentage added onto the useable SF to arrive at the rentable SF.
So if you leased 5,000 useable SF and the core factor was 15%, you would actually pay rent on 5,750 rentable SF.
For other real estate terms, see the Glossary on Reata's website.
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