net rentable area

Definition

The actual square footage tenants can occupy and must pay for, excluding common areas, mechanical rooms, and structural elements. It's why your 'thousand square foot' office feels like eight hundred.

Example Usage

The lease specified 5,000 square feet of net rentable area at $35 per square foot, totaling $175,000 annually.

Origin

Commercial leasing measurement standard developed by Building Owners and Managers Association (BOMA)

Fun Fact

The 'BOMA standard' has multiple versions and methods, creating endless opportunities for tenants and landlords to argue about square footage.

Source: Commercial real estate leasing and space measurement terminology

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