What Is Gross Rent?
Rent numbers can be quoted in either
Net rent means just the base rent for the suite. It does not include normal charges such as a percentage of common areas, utilities, property taxes, insurance, maintenance, and other charges.
Gross rent means everything included. This is the total bottom line of your monthly rent payment.
Why Use Gross Rent?
Because it is more straight forward, understandable, and honest. Often net rent is quoted, but there are so many extra charges and hidden costs that it can be difficult to get an accurate bottom line for your costs. Gross rent gives you a clear bottom line with no surprises.
We understand that it is very common to quote net rent in commercial real estate, and this can make it difficult to compare costs. But net rent is quoted in different ways and it is not always easy to see all the costs. In fact, sometimes the gross rent quoted is only partial gross rent. Make sure you get a clear picture to compare.
With us, you are getting a simple and complete bottom line number. Nothing is hidden. That is why we use gross rent.
Rentable vs Usable Square Feet
For the same reasons we use quote you prices as gross rent, we also use rentable square feet.
Usable Square Feet means the space that is directly used by the tenant. We say this is the space that you can lock up. It is the suite space itself.
Rentable Square Feet includes the percentage of common areas corresponding to the size of the suite. Common areas include things like hallways, lobby, restrooms, and the lunch room. This is the amount of space that you end up paying for in all leases.
All commercial office leases will charge for rentable square feet. Most often usable square feet is often quoted along with net rent terms. It makes the price to appear lower, and allows more wiggle room for extra charges. Rentable square feet is calculated by adding a direct percentage of common areas, or more complicated methods.
For the same reasons we quote you gross rent, we also use rentable square feet numbers from the beginning. It makes everything more clear, and easier to compare the bottom line.
You can find more technical definitions of these terms on the internet. What you need to know is that we show you everything up front. One number. And that is what you pay.
What are your lease terms?
See more info on our Flexible Leases.