Many tenants think that the rent they pay each year is calculated based on the area of the actual, physical space that they lease.  After all, that seems like the most logical approach.  Take the rent per square foot, multiply it by the area leased, and that should be the total rent paid for the year.  Right?  Not quite.

In fact, most office tenants pay rent for an area that is significantly larger than the actual space that they lease.  This larger area on which rent is paid (called the “Rentable Area” of the premises) includes, not just the actual space that is leased (the “Useable Area”) but also a share of the common areas of the building.

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