What is defined as the net rentable area?

What is defined as the net rentable area?

• A. All areas within the building excluding shared spaces
• B. Gross rentable area less public corridors, bathrooms, and storage
• C. Area that can be used by tenants
• D. Total building area including structural components

Answer: (B)

The net rentable area is defined as the space that can be actively leased to tenants, typically calculated by taking the gross rentable area and subtracting spaces that are not usable for tenants, such as public corridors, bathrooms, and storage areas. This makes option B the correct choice. Understanding net rentable area is crucial for landlords and tenants alike, as it directly impacts rental pricing and the value of the lease. The focus on usable space helps both parties to assess how much of the property can actually generate income versus space that draws no rental value due to its purposes or shared ownership.

The net rentable area is defined as the space that can be actively leased to tenants, typically calculated by taking the gross rentable area and subtracting spaces that are not usable for tenants, such as public corridors, bathrooms, and storage areas. This makes option B the correct choice.

Understanding net rentable area is crucial for landlords and tenants alike, as it directly impacts rental pricing and the value of the lease. The focus on usable space helps both parties to assess how much of the property can actually generate income versus space that draws no rental value due to its purposes or shared ownership.