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What is the Commercial Real Estate Load Factor?

Thursday, March 11th, 2021
clagett commercial real estate frederick

A commercial real estate floor plan is essential to calculating load factor.

So you’ve finally decided on a great piece of commercial real estate to settle your office or business into. You hope your business will soon have a place where employees can gather and discuss with ease. However, there are still some factors you need to prepare for financially before jumping straight into a lease or rental contract. You are likely paying for a common area or building use fee on top of a rent charge. This includes areas that all tenants use, like a parking lot, elevators, and hallways. These are added to your monthly rent bill as something known as a “load factor.” Understanding what a load factor is is extremely important for properly budgeting for rent each month and also will help clarify exactly what you are paying for. This article will help clear up the often confusing terms and conditions of commercial real estate load factors. (more…)