What does the R/U Ratio measure in the context of commercial leasing?

The R/U Ratio, or Rentable to Usable Ratio, specifically measures the relationship between rentable area and usable area within a commercial leasing context. The rentable area includes the total square footage that a tenant is charged for, which encompasses both the usable area occupied by the tenant and a proportionate share of common areas such as lobbies, hallways, and restrooms.

This ratio provides valuable information to both landlords and tenants about how much of the rented space is actually usable versus the total space a tenant is paying for. A higher ratio indicates more common area included in the rented space, which may impact the actual value a tenant perceives they are receiving for their rental cost. This understanding is crucial for tenants to evaluate lease options and for landlords to design spaces effectively.

Using the R/U Ratio can also assist in making informed decisions regarding lease negotiations and understanding the implications of shared spaces in commercial properties, allowing both parties to align their expectations accordingly.