Definition
Usable Area is the usable or occupiable part of an office, building floor, or any rentable space. This measurement usually extends from the inside finish of the permanent walls and to the midpoint of partitions separating different tenant areas on the same floor. It excludes common areas such as stairwells, hallways, restrooms, and elevators, focusing solely on the space directly utilized by a tenant.
Examples
- Office Space Calculation: In a multi-tenant office building, the usable area would be the space within a tenant’s office, excluding shared common areas such as lobbies, corridors, washrooms, and utility rooms.
- Retail Space: In a shopping mall, the usable area for each store excludes common walkways, food court areas, and restrooms, focusing only on the store’s interior, where business activities occur.
Frequently Asked Questions (FAQs)
1. What does usable area exclude in a building?
Usable area excludes common areas like hallways, restrooms, stairwells, and elevators. It includes the area that a tenant can actually occupy and use for their operations.
2. How is usable area different from rentable area?
Usable area is the actual space a tenant occupies, while rentable area includes a portion of the common areas allocated to that tenant. Rentable area is generally larger than usable area because it covers both the actual tenant’s space and a share of the common areas.
3. Why is it important to know the usable area in a property lease?
Knowing the usable area helps tenants understand the exact space available for their use and operations, which is crucial for planning layout, utilization, and calculating rent based on the area they occupy.
4. How are the interior partitions counted in the measurement?
When measuring usable area, partitions separating a tenant’s space from another are measured to their midpoint, meaning half of the partition wall is included in the usable area calculation of each tenant.
5. Is usable area the same in residential and commercial real estate?
The concept of usable area applies predominantly to commercial real estate. In residential real estate, terms like “livable area” or “apartment net square footage” may be used.
Related Terms
- BOMA Measurements: Building Owners and Managers Association (BOMA) Standards dictate how commercial areas are measured, including usable and rentable areas.
- Efficiency Ratio: The ratio of usable area to the total area, indicating how much of a building’s footprint is actually usable.
- Gross Leasable Area (GLA): Includes both the usable area and a tenant’s sharing of common spaces within the building.
Online Resources
- BOMA International: Provides standard measurement guidelines for commercial spaces.
- Commercial Real Estate Terminology: A comprehensive dictionary of commercial real estate terms.
- NAIOP: Association for Developers offers resources on real estate essentials including space measurement.
References
- BOMA Standards
- Barber, P. (2019). Real Estate Terminology for Professionals. Real Estate Publishers.
- NAIOP. (2020). Guide to Classifying and Measuring Commercial Real Estate. Commercial Publishers Inc.
Suggested Books for Further Studies
- Office Leasing: A Real World Guide by Ann M. Harts
- The Language of Real Estate by John W. Reilly
- BOMA Office Measurement Standards by Building Owners and Managers Association International
- Commercial Leasing: A Transactional Primer by David P. Hinkel
- Understanding Moonbow Measurements by MBB Senior Class 2020
Real Estate Basics: Usable Area Fundamentals Quiz
### Usable area excludes certain parts of a building. Which of the following is not included?
- [ ] Interior tenant partitions
- [ ] Occupied office spaces
- [ ] Meeting rooms included in individual leases
- [x] Elevators and stairwells
> **Explanation:** Usable area does not include common areas like elevators and stairwells. It focuses solely on the spaces that tenants actually use and occupy.
### Usable area is measured from which points inside the walls?
- [ ] Corner to corner
- [x] Paint to paint
- [ ] Edge to edge of beams
- [ ] Ceiling to floor
> **Explanation:** Usable area is commonly measured from the paint to paint inside the permanent walls to the middle of partitions that separate tenants.
### Why is knowing the usable area important?
- [ ] For deciding the paint color
- [ ] For measuring natural light exposure
- [x] For planning office layout and utilization
- [ ] For determining the number of windows
> **Explanation:** Understanding the usable area is critical for planning office layout, utilization, and calculating rent based on the space occupied.
### How is usable area different from rentable area?
- [x] Usable area excludes common areas, while rentable area includes a portion of these spaces.
- [ ] Usable area is larger than rentable area.
- [ ] Usable area only counts floor space, rentable area includes vertical space.
- [ ] They are measured the same way.
> **Explanation:** Usable area focuses solely on the tenant-specific occupied space, while rentable area includes a shared portion of the common areas.
### What does BOMA stand for in commercial real estate terms?
- [ ] Business Organization Managing Assets
- [ ] Bureau of Office Measurement Assessments
- [x] Building Owners and Managers Association
- [ ] Business Office Management Application
> **Explanation:** BOMA stands for Building Owners and Managers Association, which establishes standards for measuring commercial spaces like usable and rentable areas.
### What ratio does the efficiency ratio represent?
- [x] Usable area to gross area
- [ ] Rentable area to parking space
- [ ] Usable area to rentable area
- [ ] Rentable area to utility space
> **Explanation:** The efficiency ratio is the ratio of usable area to the total gross area of a building, highlighting how much of the space is actually usable.
### Which of the following best describes "Measured to midpoint of partitions"?
- [x] Counting half the width of partitions in the usable area
- [ ] Measuring from the top to bottom of partitions
- [ ] Excluding partitions completely
- [ ] Doubling the measurement of partitions
> **Explanation:** "Measured to midpoint of partitions" means that half of the partition wall's width is included in the usable area calculations for each tenant.
### What does Gross Leasable Area include?
- [ ] Only outdoor spaces shared by tenants
- [x] Usable area plus shared/common spaces
- [ ] Usable area only
- [ ] Emergency exits only
> **Explanation:** Gross Leasable Area includes both the usable area and the tenant's allocation of the shared/common spaces within the property.
### Which organization often publishes guidelines for measuring usable area?
- [ ] Real Estate Council
- [ ] US Green Building Council
- [x] BOMA
- [ ] International Building Code
> **Explanation:** BOMA (Building Owners and Managers Association) is known for publishing guidelines regarding the measurement of usable areas in commercial spaces.
### Can stairwells be included in usable area calculations?
- [ ] Always
- [ ] Sometimes
- [ ] Rarely
- [x] Never
> **Explanation:** Stairwells cannot be included in usable area calculations as they are considered common areas shared by all building occupants.
