-1.png){kind=small}
Load Factor
Load factor relates rentable floor area to usable floor area. As a multiplier, it equals rentable area divided by usable area.
Load factor relates rentable floor area to usable floor area. When expressed as a multiplier, it is rentable area divided by usable area; applying that multiplier converts usable area to rentable area.
Property operations example: label both area measurements and their measurement basis. Distinguish the multiplier from the add-on percentage rather than comparing an unlabeled factor with a percentage.
Source: NAIOP Research Foundation, Commercial Real Estate Terms and Definitions, 2024, p. 8.
Frequently Asked Questions
How does a load-factor multiplier differ from an add-on percentage?
The add-on percentage is the multiplier minus one, expressed as a percentage. For example, a 1.15 multiplier corresponds to a 15% add-on.
More in Leasing
See all Leasing terms →Assignment of Lease
The complete legal transfer of an existing tenant's entire leasehold rights, obligations, and physical occupancy to a new incoming tenant.
Read definition →Base Rent
The fixed minimum monthly rent agreed upon in a lease agreement, excluding utilities, janitorial, or shared operating expense pass-throughs.
Read definition →Co-Tenancy Clause
A commercial lease clause granting rent reductions or termination rights if anchor tenants vacate or center occupancy falls below agreed levels.
Read definition →Concession
A rental concession is an allowance, such as a free-rent period or move-in credit, that reduces rental income.
Read definition →Continuous Operation Covenant
A commercial lease requirement obligating a retail tenant to keep its store open, fully stocked, and staffed during designated business hours.
Read definition →