What does Rental Space include in addition to usable space?

The concept of Rental Space encompasses both the area that can be directly used by tenants, known as usable space, and additional areas that are shared among tenants, referred to as common space. This includes facilities such as lobbies, hallways, elevators, restrooms, and other shared amenities that are essential to the operation of the building.

The definition that includes both usable space and a prorated share of common space reflects a common practice in commercial leasing, where tenants pay for a portion of both their exclusive areas and the shared facilities that benefit all occupants. This method fairly allocates the costs of maintaining the common areas across all tenants, ensuring that each pays an equitable share based on the proportion of total space they are leasing.

Understanding this combination is crucial for legal managers and those involved in real estate transactions, as it impacts tenant negotiations, lease structures, and overall management of the rental property. By accurately defining what constitutes Rental Space, companies can provide transparent and fair lease agreements, ensuring that tenants understand what they are paying for and what spaces they are entitled to use.