Load factor

Your base rent includes the charge for the rentable square footage of your offices.  You also pay a separate fee for the common areas, which include the lobbies, hallways, restrooms and service areas that you share with other tenants.  This is known as a load factor or loss factor.

Load factors generally run between 27 and 31 percent – the higher the factor, the more space you need to rent as usable space.  It’s important to know the load factor to determine the true price being quoted per square foot for the space.