What is R/U Ratio?
The ratio of rentable area to usable area in a commercial building, used to quantify the common area markup tenants pay beyond their exclusive-use space.
Definition
The R/U ratio (rentable-to-usable ratio) quantifies the relationship between a building's rentable area and its usable area. It is calculated by dividing total rentable square footage by total usable square footage. An R/U ratio of 1.15 means that for every 1,000 usable square feet a tenant occupies, they are billed on 1,150 rentable square feet — the additional 150 square feet representing their proportional share of common areas. The R/U ratio is functionally equivalent to the load factor and is determined by BOMA measurement standards. Changes in measurement methodology — such as BOMA 2024's treatment of outdoor amenity spaces — can alter a building's R/U ratio, affecting every tenant's rental and CAM obligations. Property controllers should recalculate R/U ratios when buildings are remeasured or BOMA standards are updated.
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