What is a common area factor?
What is a common area factor?
The common area factor, also referred to as “load factor” or “add-on factor,” is the increase in the rentable square footage above the usable square footage.
How do you find the common area factor?
Common Area Factor (or Load Factor) Landlords add all of the rentable space throughout the building (even elevator shafts, stairways, maintenance areas, and utility rooms), then subtract the total space contained within tenant leases to arrive at a shared common area between all tenants.
What defines a common area?
What are common areas? Common areas are elements of a property available for use for all tenants or owners. Deeper definition Common areas can include hallways, sidewalks, parking lots, community swimming […]
What does NNN stand for in real estate?
triple net lease
A triple net lease (triple-net or NNN) is a lease agreement on a property whereby the tenant or lessee promises to pay all the expenses of the property, including real estate taxes, building insurance, and maintenance.
How do you calculate core factor?
The core factor can be calculated by dividing the rentable square footage by the usable square footage.
What is a typical core factor?
Term. Main definition. Core Factor. The percentage of common areas in a building (rest rooms, hallways) that, when added to the net usable square footage equals the net rentable square footage. May be computed for a building or floor of a building.
What is a common area agreement?
Landlord grants Tenant the non-exclusive right, together with the other occupants of the Property, if any, and their agents, employees and invitees, to use the Common Area during the Term, subject to all Laws.
What is the difference between Cam and NNN?
The difference between the two is very simple. CAMs are Common Area Maintenance, and NNNs are three nets, which include property tax, insurance and common area maintenance. CAMs typically include expenses such as landscaping, security, trash, scheduled maintenance, management fees, etc.
What does NNNN mean in texting?
Acronym. Definition. NNNN. End of Message (radioteletype)
What is core factor?
What is a good core factor?
In most multi-story office buildings, the core factors will range from 12% to 13%, but some newer buildings have run as high as 15%. If a single story building has a core factor, it is typically a nominal percentage (less than 2%) to account for a sprinkler and/or electric room.
What is the common area factor in a building?
The Floor Common Area Factor refers to tenant common areas on that floor only, and although the number varies from building to building, it is generally near eight percent of the floor for a factor of 1.08. The Building Common Area Factor refers to common areas for all the tenants in the building, and can range from six to eight percent.
Do you have to pay common area factor?
Like small tenants, full-floor or multi-floor tenants also must pay a share of the building common areas not on their floor, such as the main building lobby. The common area factor is a number which refers to shared spaces on a single floor, and within a building in its entirety.
What is the definition of a common factor?
In Maths, common factors are defined as factors that are common to two or more numbers. In other words, a common factor is a number with which a set of two or more numbers will be divided exactly. To find common factors of two numbers, first, list out all the factors of two numbers separately and then compare them.
How does loss factor affect common area ratio?
By quoting the Loss Factor, a landlord is able to quote what appears to be a lower Common Area Ratio, while maintaining the same rentable (i.e. income producing) square footage. In the second example, we hold the Useable Area and R/U Ration constant: See the difference?