Does the Actual Space Measurement Really Matter?

The answer is  yes and no. Space measurement does not matter in cases where there is annual or monthly rent defined in the contract in terms of absolute dollars and there is no pass throughs of common area expenses to the tenants. In most other cases size matters and here is why.

Many contracts provide for a rental rate on a dollar per square foot basis. The basis may be rentable, gross, or usable and there are a number of alternative space measurement standards. In these cases, the rent is multiplied by the area of the demised premises so an incorrect rental rate can lead to a discrepancy between what is actually being rented and the amount of the rent.

It is not good practice to accept the landlord’s measurements.  There may be errors in the measurement or the basis for the measurement may not be the basis of your rental contract.

In summary, it is appropriate to have the space re-measured in the field and then applied to the rental rate. Rental rates using usable space (typically the carpeted area) are the most appropriate since one only pays for what is being utilized. Note that incorrect space measurements also affect pass through items so an incorrect measurement or application of the measure can have secondary effects
as well.

Article by NAI Global

Call a Tenant Representation Broker; they can assist in the process.

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About Bryan Cole and NAI Keystone

Bryan joined NAI Keystone in early 2004, but before joining NAI, Bryan Cole spent 4 year’s active duty in the United States Marine Corp, including a 6 month deployment in Afghanistan, a 4 month deployment in Kuwait/Iraq, and a 7 month deployment in Japan. Prior to joining the military Bryan was involved in the construction of commercial and multi-unit properties in the Philadelphia suburbs. Bryan has experience working with a diverse group of individuals in numerous countries throughout the world. During Bryan’s time at NAI, he has sold and leased well over $150 Million Dollars worth of Commercial Real Estate. Because of this, Bryan earned NAI gold club status his first year in the business. Bryan is currently working on earning both his CCIM designation and SIOR designation. Bryan has been NAI Keystone’s Top Performer from 2006 – 2010.

NAI Keystone is a full service commercial and industrial real estate firm located in Reading, Berks County.  NAI Keystone manages and handles approxitmately 4 Million square feet of commercial and industrial space in Berks and Schuylkill County.  NAI is the only firm in Berks County dedicated to strictly commercial real estate.