How do you calculate the lease amount for a commercial space if you are quoted at $15-16 per foot on a 900 square foor space?

That's a great question, as many people do not know what this type of rent quote means. The $15-16 "per foot" is actually more acurately described as "per rentable square foot per year." Thus, $15 for a 900 rentable sqft space would be $15 x 900 = $13,500.00 per year, or $1,125.00 per month.

It is also important to understand the concept of "rentable" square feet, which can be measured in different ways. "Rentable" area is "usable" area plus a "load factor." It is a method for allocating the common areas of the building among all the tenants for purposes of calculating base rent and operating costs.

Although this is a little simplistic, think of usable area as the area within the perimeter of the space, minus any common elements that take up some of that space, such as mechanical rooms, elevator shafts, utility corridors, etc. The sum of all the usable area of spaces in the building will be less than the total area of the building. The load factor allocates that additional area proportionately.

For example, if the total area of the building is 110,000 sqft, but the sum of the usable area of all the spaces is only 100,000 sqft, the landlord will allocate that extra 10,000 sqft among the spaces. In this example the common space is 10% more than the usable space, so the landlord will add 10% to the usable area of each space. So in your example of a 900 sqft space, you need to know if that is usable or rentable area. If it is rentable area, then the rent calculation above is correct. If it is usable area, then applying my example, the rentable area would be 900 + 10% = 990 rentable sqft and the rent would be $15 x 990 = $14,850.00 per year ($1,237.50 per month).

Another important piece of information you need is whether that $15 figure is "triple net" or "gross." If it is gross rent, then it includes all the building operating costs, such as maintenance, taxes, insurance, common area utilities, etc. If it is triple net, then in addition to the $15 "base" rent, you will be charged your proportionate share of the building's actual operating costs. This will vary from year to year (or month to month), but you should ask how much those costs currently are.

You should consult an attorney about your specific situation.

PLEASE BE ADVISED: This answer and any information contained herein is not intended to be treated, and should not be construed, as legal advice. Rather, this answer is offered solely for general information purposes. This answer does not create an attorney-client relationship, nor does it create any kind of legal relationship, duty, or privilege. This attorney is licensed only in Washington.