Property Valuation
The 'rentable area' of a commercial building is typically:
ALarger than the usable area because it includes a proportionate share of common areas✓ Correct
BSmaller than the usable area
CEqual to the gross building area
DCalculated using only interior dimensions
Explanation
Rentable area = usable area (the space the tenant exclusively occupies) plus the tenant's proportionate share of common areas (lobbies, restrooms, corridors). Leases are often written on a rentable area basis.
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