What is Load Factor?
The ratio of a building's total rentable area to its total usable area, accounting for common areas allocated proportionally to tenants.
Definition
The load factor (also called the add-on factor or R/U ratio) is the ratio of a building's total rentable area to its total usable area. It accounts for common areas like lobbies, hallways, restrooms, and mechanical rooms that are allocated proportionally to all tenants. A load factor of 1.15 means tenants pay rent and CAM on 15% more space than they physically occupy. Load factors vary significantly by building class, age, and design — Class A office buildings typically have higher load factors than industrial properties. BOMA 2024's inclusion of outdoor amenity areas can increase a building's load factor, affecting every tenant's financial obligation.
Validate Your CAM Reconciliations
CapVeri catches gross-up errors, cap violations, and billing mistakes before tenants or auditors find them — from your Yardi or MRI exports.
Start Free Audit