In a BC commercial lease, what is the difference between 'usable area' and 'rentable area'?
Correct Answer
C) Usable area is the tenant's exclusive space; rentable area adds a proportionate share of common areas through a load factor
In BC commercial leasing (following BOMA standards), usable area is the space exclusively occupied by the tenant within their demised premises. Rentable area is the usable area multiplied by a load factor (or add-on factor) that allocates the tenant's proportionate share of common areas such as lobbies, corridors, and shared washrooms. Tenants pay rent based on rentable area, which is always larger than usable area.
Why This Is the Correct Answer
Option C is correct because usable area is the space exclusively occupied by the tenant within their demised premises (the space inside the tenant's walls). Rentable area adds the tenant's proportionate share of common areas (lobbies, hallways, shared washrooms, elevator lobbies) using a load factor. Tenants pay rent based on the larger rentable area figure, which is always more than the usable area.
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