The Difference Between Rentable Space, and Usable Space

A lot of clients who are new to Calgary commercial real estate assume, quite reasonably, that they should set out by looking for the certain amount of space that they need, and expect they’ll pay for that and nothing more. What they are often surprised to find, however, is that it doesn’t always work that way.

Why? Because there is sometimes a difference between rentable space and usable space in commercial real estate.

Allow me to explain: Suppose you’re checking out the new office. It’s two thousand square feet, which is the right size for your growing company, and the landlord wants an amount for each square foot that’s within your budget. In theory, things should be pretty straightforward; in practice, however, you may actually end up paying for more square footage.

The reason for the difference is that there could be other areas of the building – such as hallways, elevators, common areas, and more – that you could be responsible for paying for, either in whole or in part. The trick is that some rental agreements will have these costs factored into the original square footage price, while others will consider them additional “rentable space” that has to be paid for.

Given that this can significantly impact your lease rates, and that you may or may not need these extra rentable spaces, what’s the best way to find a commercial property in Calgary to meet your needs? How can you be sure that you’re getting a good deal for what you actually need?

The answer to both is to do what you would with any important business decision: Ask a lot of questions and get great advice. While you might be an expert at running and growing your company, you probably aren’t familiar with all the ins and outs of commercial real estate in Calgary. Why not count on someone like me to look out for your interests?

Having the right Calgary commercial REALTOR® can make all the difference in the future of your company. Contact me for a free consultation today.

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