Monday, November 5, 2007

Add-On-Factor

commercial real estate

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Glossary of Terms


Add-On Factor - Often referred to as the "loss factor or rentable/usable (R/U)
factor", it represents the tenant's pro-rata share of the building common
areas, such as lobbies, public corridors and restrooms. It is usually expressed
as a percentage which can then be applied to the usable square footage to
determine the rentable square footage upon which the tenant will pay rent.







































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