Leasing

Leasing

Whether you are a landlord with vacancies to fill or a tenant seeking a new space, our leasing service delivers.

It’s our goal to bring landlords and tenants together and make ownership and operation of your investment property hassle-free. We procure leases with tenants by marketing your property and verifying details so you can manage your new tenant with confidence. Whether its full-service property management or just making sure your rent is on time, our leasing services are here to help.

Our services include:

  • Handling and processing the letters of intent from prospective tenants.
  • Present screened tenants to you.
  • Ensure accurate completion of the lease and associated documents.
  • Handle processing of initial tenant payments.

If you don’t want to be available 24/7, click here for our property management services.

Office Lease? What is the “Core Factor”?

Core Factor (Office Buildings)

Why is core factor important to someone searching for space?
Building owners charge their tenants for their prorated share of the common areas (core factor). It is included in the tenant’s net rentable area. Thus, the lower the core factor, the less the tenant must pay for space that is shared by all. The higher the core factor, the more the tenant must pay for space that is not their own.

The core factor may be expressed as a range (e.g. 10% – 15%) particularly in multi-tenant properties. Core factors are typically higher in multi-tenant than single occupier or owner/user office properties and can be as high as 40% in older, inefficient properties. While the core factor on some properties may be zero, this is a rarity.

How to collect this information
While interviewing your contacts, ask your brokers and building owners:
• “What is the Core Factor?”

If they do not know what CORE factor is, explain:
• “Typically in an office building with common area each tenant pays for their pro-rata share of the common areas as part of the net rentable area. What percent of the building is common area?”

How is it calculated?
Core factor (AKA “Loss Factor” or “Load Factor”) is the percentage of rentable area in an office building that is not considered usable, or the percentage of a floor considered common square-footage such as washrooms, janitorial closets, electrical rooms, telephone rooms, elevator lobbies, and public corridors which are available primarily for the use of tenants on that floor.

Common area does not include major vertical penetrations such as elevator shafts, stairways, equipment runs, etc.

 Example:
(R – U) / R or C / R
Rentable Area = 11,500 SF
Usable Area = 10,000 SF
Common Area= 1,500 SF
C / R = (1,500 SF) / (11,500 SF)
= .1304 = 13.04%

Landlords Read more hereResidential tenantsread more here.

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