Cam Appleton | Load factor: Vancouver Commercial Real Estate Encyclopedia

For example: Hypothetical: two offices both quote the same rent per square foot of rentable area, but one has a much higher load factor. The tenant there pays for more common area to get the same usable space. (Illustration only, not a real deal.)

This is a general industry term with no single official definition. Your lease or contract wording controls.

Example only, not a real client. Say two offices both quote the same rent per square foot on 2,500 rentable square feet. One has a high load factor, so your usable space is noticeably smaller. When we compare usable area and total yearly cost, the other office gives you more room for your desks for about the same money.

What I’d tell a friend

Ask for both usable and rentable area, and compare offices on total cost per usable square foot. The quoted rent alone can hide a real difference in working space.

Why it matters to you

You pay rent on a share of hallways, lobbies and washrooms, not just your own floor. A high load factor can make the cheaper-looking space cost more, so compare spaces on total cost, not rent per square foot.

How to use it in your deal

Ask for both the usable and the rentable area in writing, and which measurement standard was used. Compare spaces on total cost for the area you'll actually use. If the building has been remeasured recently, ask why and whether your area changed. On renewal, check that the load factor hasn't crept up.

Ask the landlord to break down what common areas are in the factor, like lobbies, corridors, washrooms or mechanical rooms. Compare buildings on usable area and total cost, not rentable area alone. If the landlord renovates common areas, the factor might rise at renewal, so ask whether it's fixed for your term.

Mistakes I see

Comparing asking rents without comparing load factors. Accepting a rentable area without seeing a measurement certificate. Forgetting that operating costs and taxes are usually charged on rentable area too.

In BC and Vancouver

No BC law sets load factors. Many Vancouver landlords use Building Owners and Managers Association (BOMA) standards, and the lease's definition controls. Strata units are different: the strata plan shows the unit's area.

Official sources: Strata Property Act (BC Laws)

Rentable versus usable

Usable area is the space you actually occupy behind your door. Rentable area adds your share of common areas such as lobbies, corridors and washrooms. The load factor is the gap between the two, and you pay rent and costs on the rentable figure.

A higher load factor can be reasonable when the common areas are useful, such as a good lobby or shared meeting rooms. It still means part of your rent pays for space you share.

Checking the numbers

Ask how the area was measured and to which standard. Different standards can give different results for the same space, and older measurements are sometimes out of date.

Ask whether either side can remeasure, and what happens to rent if the area changes. Agreeing that before you sign avoids a surprise increase midway through the lease.

Questions to ask before you sign

What are the usable and rentable areas?
Which standard and which version was used?
Can I see the measurement certificate?
Will the area change during the term?

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General information for British Columbia only. It isn’t legal, tax, accounting or financial advice, laws and rates change, and reading it doesn’t make you my client. Any numbers or scenarios are hypothetical. Check the linked official source and talk to a lawyer, accountant or other qualified professional before you act or sign anything. See the terms and disclaimer.