What is core factor in commercial real estate?

Main definition. Core Factor. The percentage of common areas in a building (rest rooms, hallways) that, when added to the net usable square footage equals the net rentable square footage. May be computed for a building or floor of a building.

How do you calculate core factor?

The core factor can be calculated by dividing the rentable square footage by the usable square footage. It is imperative that we, as Tenant Rep’s educate our clients on understanding this number in order to allocate costs and compare different options.

What is a good core factor?

In most multi-story office buildings, the core factors will range from 12% to 13%, but some newer buildings have run as high as 15%. If a single story building has a core factor, it is typically a nominal percentage (less than 2%) to account for a sprinkler and/or electric room.

What is load factor in commercial real estate?

In short, the load factor is the percentage of space on a floor or building that is not usable and is expressed using the simple formula of rentable area divided by useable area minus one. … Another common use of load factors is in calculating CAM charges in a multi-tenant building.

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What is a loss factor in commercial real estate?

Loss factor is defined as the percentage difference between rentable area — the number of square feet that office tenants pay for — and usable area. A building with a rentable area of 400,000 square feet and a usable area of 300,000 square feet, for example, has a loss factor of 25 percent.

How do you calculate load factor in commercial real estate?

Calculate load factor by dividing the total square footage in the building by the usable square footage. In this example, you would take 6500 square feet – the total square footage of the building – and divide it by 5500 – the usable square footage of the building. That gives us a load factor of 1.18.

What is add on factor?

The add-on factor is the percentage of a building’s gross usable space that is added to each tenant’s rented space to determine their total rent. The add-on factor plays an important role in setting lease rates, especially in commercial real estate.

How are commercial lease spaces measured?

To measure commercial square footage for a rectangular space, multiply the length of the room in feet by its width. For example, a room that is 12 feet long by 12 feet wide is 144 square feet.

How do you determine load factor?

The load factor calculation divides your average demand by your peak demand. To calculate your load factor take the total electricity (KWh) used in the billing period and divide it by the peak demand (KW), then divide by the number of days in the billing cycle, then divide by 24 hours in a day.

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What is meant by load factor?

Load factor is an expression of how much energy was used in a time period, versus how much energy would have been used, if the power had been left on during a period of peak demand. It is a useful indicator for describing the consumption characteristics of electricity over a period of time.

What is average load factor?

The load factor is a dimensionless number equal to the average load divided by the peak load. For example, if the average load is 66 kWh/d (or 2.75 kW) and the peak load is 10.5 kW, the load factor is 2.75 kW/10.5 kW = 0.26.

What is a core factor?

Main definition. Core Factor. The percentage of common areas in a building (rest rooms, hallways) that, when added to the net usable square footage equals the net rentable square footage. May be computed for a building or floor of a building.

What is the difference between load factor and loss factor?

Load Factor (LF) is defined as the ratio of the average demand over a period of time to the maximum demand within that period for the particular network Loss Load Factor (LLF) is defined as average power losses over a period of time to the losses at the time of peak demand.

What is included in GSF?

GROSS SQUARE FEET (GSF)

Gross Square Feet is the total area of enclosed space measured to the exterior walls of a building. This is an umbrella term that includes everything in a facility, even unusable spaces (think areas in between walls).