My above question is not for a particular region, it is general in the real estate industry. Thanks
A “loss factor” is the product of multi-tenanted buildings and depends entirely on how much common space (stairwells for example) is shared and how many tenants are sharing it.
In reality, a loss factor is usually determined by how much a landlord can get away with, not by actual measurements or calculations. This is known as “grossing-up” the rentable area of a space.
Yes, the loss factor depends on the product of multi-tenanted buildings and how common space and tenants are shared. To get further information you can take a look at industrial real estate and get some assistance.
Thanks.
The loss factor is determined often by how much a landlord can get away by no actual measurements or calculations. Nowadays these are very commonly seen everywhere as it is the product of the multi-tenanted buildings on how much space they are sharing. To know more about it you can visit real estate agent . Thanks.
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The difference between “rentable square footage” (RSF) and “usable square footage” (USF) is the loss factor (USF). RSF includes a proportionate amount of common areas such as the lobby, corridors, public restrooms, and elevator vestibules. USF, on the other hand, is the space set aside for your company’s use. As a result, USF is always smaller than RSF. Commercial landlords use RSF as the measurement for the commercial office space they are leasing, which makes sense considering that the use of common areas is included in the rent.
Loss factor can modify quite a bit and there have been cases where rentable square footage has grown 4o%+ over the years without a building having added any space. This enhances the loss factor easily by re-calculating square footage or rehabbing a space and turning the loss factor amount. In NYC, for example, it averages at about 26% for a single-tenant full floor office space.
Typically, large towers or buildings normally will have larger loss factors (e.g. 40 percent above) than a smaller building (maybe only about 16%). Rentable square footage tends to rise especially when the market is hot.
I’m Robert from California.
The loss factor varies greatly, and there have been instances where rentable square footage has increased by 40% or more over time without a building adding any space. Simply recalculating square footage or renovating a space and increasing the loss factor amounts increases the loss factor.
Larger towers or buildings typically have higher loss factors than smaller structures. Rentable square footage tends to increase, especially when the market is hot.