COMMERCIAL BUILDING SQUARE FOOTAGE DISCLOSURE
Property: __________________________, ___________, _____ DATE: ________
You are leasing Space, Unit, or Suite # _______
This form explains how the owner has calculated the size of your space, and your share of property operating expenses.
We use the Building Owners and Managers Association (BOMA) standards (also known as the American National Standards Institute (ANSI) standards) to measure space. You can obtain a copy at the BOMA website: www.BOMA.org – Codes & Standards, "Standard Method For Measuring Floor Area". This plain language explanation is not a substitute for the above.
In summary, commercial buildings are measured four ways: (1) Gross Building Area, which is the entire building by exterior measurements, (2) Net Useable area, which is the space exclusively occupied by a tenant, which includes, generally, one half of the demising walls, (3) Building Common Area, which are the portions of the building that are for the service of the entire building or more than one tenant’s (aka "common") use, and (4) Gross Rentable area, which is a combination of #2 and a share of #3, for a specific tenant.
The "square footage" estimates on this form are prepared from architectural or designer space plans, in possession of the owner. You may engage an architect or designer at your own expense, before entering into the lease, to verify precise measurements. Otherwise, the lease will be prepared and will be binding on you, using these owner’s estimates.
FORMULA FOR YOUR RENTABLE AREA:
Your useable area is estimated to be: _________ sq. ft.
The total common area of the property is _______ square feet, which is divided by the gross building area of ___________ square feet, which derives a percentage (known as "load factor") which is __ %
Your gross rentable area is the net useable area of ________ plus ___ % load factor, for a total of _______, Gross Rentable area. Your rent will be based on this rentable figure.
FORMULA FOR YOUR SHARE OF COMMON AREA OPERATING EXPENSES:
The gross rentable area of ________÷ gross building area of the entire property _____________ = ___ %, which is your Pro Rata share of the building. This Pro Rata share will be used to compute your share of the common area operating expenses. Please read your lease regarding operating expenses.
Understood and accepted:
For the Owner: ________________, Print name: ____________, title: ________, Date:
For the Tenant: ________________, Print name: ____________, title: ________, Date: