Real Estate Math
A Delaware commercial building has 15,000 sq ft of total space, 2,500 sq ft of common areas (not rentable), and 12,500 sq ft of net rentable area. What is the load factor?
A16.67%
B20%✓ Correct
C25%
D12.5%
Explanation
Load Factor = Common Area ÷ Net Rentable Area × 100 = 2,500 ÷ 12,500 × 100 = 20%. Gross square footage = Net Rentable Area × (1 + Load Factor) = 12,500 × 1.20 = 15,000. ✓
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