When considering a commercial real estate investment, it’s important to understand the difference between rentable square feet and usable square feet. Both are used to measure a property’s size, but they differ in how they are calculated and impact your financial investment.
Rentable square feet (RSF) is a measurement of the total space a tenant would be able to rent in a commercial building. It includes the tenant’s area along with a portion of the common areas of the building. This measurement includes walls, hallways, and other common spaces shared with other tenants, and it is the number used to determine the rent a tenant will owe.
Usable square feet (USF) is a measurement of the actual space a tenant occupies. It does not include the common areas, and it is the number used to determine how much a tenant will pay for a space.
When looking at a commercial real estate investment, it’s important to understand the difference between rentable and usable square feet. The rentable square feet measurement is used to determine how much rent a tenant will owe, while the usable square feet is used to determine how much a tenant will pay for a space. Knowing the difference between the two measurements will help you make an informed decision when it comes to leasing or buying a property.
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