Encyclopedia
Rentable area
Usable area plus a share of common areas.
For example: A tenant pays rent on rentable area, which is larger than usable area. (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 you are comparing two office suites, each quoted at 2,000 rentable square feet. You ask for the usable area of each and find one has noticeably less space inside the door because its building has a larger share of common areas. For the same rent, the other suite gives your team more room.
What I’d tell a friend
Rent is usually charged on rentable area, so ask how it was measured and how much of it you can actually use.
Why it matters to you
Rent is usually charged on rentable area, which includes a share of common space. That's why two spaces with the same usable area can have very different rent, so ask for both numbers.
How to use it in your deal
Tenants should ask for both usable and rentable area, the load factor and the measurement standard used. Compare buildings on the usable space you actually get. Ask for remeasurement rights if numbers look off. Landlords should measure using a recognized standard and keep drawings.
Buyers should check the rent roll matches measured areas, since errors affect income and may surface as tenant claims later. A Mount Pleasant office tenant who discovers its suite is smaller than billed may ask for a refund of past rent, depending on the lease.
Owners renovating common areas should know that changing lobbies or corridors can shift every tenant's share, so plan the remeasurement and tell tenants early. Tenants in multi-tenant industrial buildings face this less often, but mezzanines and shared yards can still raise questions about what's included.
Mistakes I see
Comparing rents without checking load factors. Accepting areas without drawings. Ignoring remeasurement clauses. Assuming the listing's square footage is rentable, usable or gross without asking which. Forgetting that additional rent shares are usually based on rentable area too.
In BC and Vancouver
No BC statute sets measurement; leases usually reference a Building Owners and Managers Association (BOMA) standard. Disputes follow contract law.
Official sources: CanLII (court decisions)
What rentable area includes
Rentable area is your usable space plus a share of the building’s common areas, such as lobbies, corridors, shared washrooms and service rooms. Most office and many retail rents are quoted on it.
The share of common area is often shown as a load factor. Two buildings can measure differently, so the same rentable figure can mean different amounts of real space.
Checking the number
Ask which measurement standard was used, when the space was last measured and whether the measurement was certified by a professional.
Ask whether either side can remeasure during the lease and what happens to rent and additional rent if the area changes. Settling that in the offer avoids surprises later.
Questions to ask before you sign
- What's the usable area?
- What's the load factor?
- Which standard was used?
- Can I remeasure?
Keep reading
Related terms: Usable area, BOMA measurement
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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.