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The rentable square feet is the actual space that the tenant pays rent on and what it is it’s made up of the actual usable space, which is the envelope of space that the tenant occupies, plus their pro-rata share of the common areas, the bathrooms, the corridors, the common lobby down the stairs. The way the rentable square footage is calculated is you take the usable space and you multiply it by a percentage, which is known as either add on factor or load factor and a lot of times, depending on the building, it could be anywhere from 15 to 30%. In most buildings, tenants like to have it more efficient, which would be a lower percentage. They don’t want large lobbies that they don’t have really any use for, but they’re paying for. The more efficient a building is, obviously, the lower the percentage and the more bang for the buck the tenant gets.

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