When searching for a building to lease for your company, one important detail to consider is space, both usable and rentable. Office space in multi-tenant buildings includes both types of space, each of which can be used by your company in different ways.
Depending on how each of these areas is measured, the total leased square footage you need may increase when the time comes to renew your lease. This is why now is the time for you to think about the future changes that may occur that need to be discussed with your office space company.
Usable vs. Rentable Space
Usable space and rentable space are two important terms that affect how much actual office space your company has to work with and how much it will cost. Usable space is the area you rent that is used exclusively by you and cannot be used by any other business also renting in the same building.
Rentable space consists of common areas in a multi-tenant building that all tenants can use such as restrooms, lobbies, common hallways, elevators, etc. All of these areas are considered as leasable space and paid for by all tenants.
This space is added to an office lease as a percentage of each tenant’s amount of usable square footage. All tenants proportionally share the costs of common areas to support building maintenance for all tenants.
Some Buildings May Have Future Growth
Although a building may not seem physically larger, some office buildings could be growing in the near future for two important reasons:
- Adding and Improving Building Amenities - Any office space leasing company knows that one of the ways landlords keep their buildings filled and more comfortable for tenants is by adding and improving on building amenities. As office space becomes very desirable and competitive, many landlords are adding popular amenities such as fitness centers, rooftop terraces, lounges, bicycle storage areas, and more. All of this is rentable square footage and its cost must be shared among tenants.
- Changes in BOMA Industry Standards - A new measurement and rental calculation standard released in September 2017 by the Building Owners and Managers Association (BOMA) is changing a few things. BOMA sets the industry standard policy for measuring office lease space. They have made clarifications in its most recent standard release that classifies new rentable and usable areas within a building.
The last item may be part of the drive behind the improvements some landlords are making in order to increase the amount of square footage they can charge for in their leases now.
How Will This Growth Affect You?
Based on the new BOMA standard, the space your company currently occupies could technically increase if your landlord chooses to recalculate building square footage. If your landlord is also adding building amenities, the building's rentable square footage will go up as well.
While this may not affect you until it is time to renew your lease, be prepared to work with an office space company that can help you understand any changes in your usable and rentable space since this will affect the amount of rent you pay for your leased location.
Whether you are looking for new office space or simply plan on renewing an office lease, pay attention to the adjustments being implemented since the recent BOMA standard release. The classification and measurement of usable and rentable square footage in your building may be changing, resulting in larger areas and slightly elevated rent charges.
Be prepared for these possibilities by hiring an experienced office space company to negotiate on your company’s behalf so you can get the best space at the best rates!