Ever wonder why two office suites with the same size feel like they cost very different amounts? If you lease or own office space in Salt Lake County, the answer often comes down to the building’s load factor. Understanding how usable and rentable square feet work can save you real money and confusion. In this guide, you will learn how load factor works, what is typical locally, how to compare suites fairly, and what to ask before you sign. Let’s dive in.
What load factor means
In most Salt Lake County office buildings, rent is quoted on rentable square feet. Rentable square feet equals your usable space plus your share of building common areas like lobbies, corridors, and restrooms. The load factor is the ratio that converts usable square feet to rentable square feet.
Industry participants often measure space using BOMA’s Office Standard. Because some terms are used inconsistently, it is smart to define the math in your lease. When in doubt, ask for the exact formula and floor plans that support the calculation.
USF vs RSF: quick definitions
- Usable SF (USF): the area you occupy and control exclusively, like offices, open work areas, and your in-suite rooms.
- Rentable SF (RSF): your USF plus a proportionate share of building common areas.
- Load factor: the ratio RSF divided by USF. Add-on percent equals load factor minus 1.
How to convert and compare
Use these conversions to compare spaces on the same basis:
- RSF = USF × Load factor
- Load factor = RSF ÷ USF
- Rent per USF = Rent per RSF × Load factor
- Rent per RSF = Rent per USF ÷ Load factor
Example: Quoted rent is $28 per RSF per year. Your usable area is 10,000 USF and the load factor is 1.15, which makes RSF 11,500. Annual rent equals $28 × 11,500 = $322,000, or $32.20 per USF.
Compare two suites the right way
- Suite A: 8,000 USF, load factor 1.08, rent $26 per RSF. Effective rent equals $26 × 1.08 = $28.08 per USF.
- Suite B: 8,000 USF, load factor 1.20, rent $25 per RSF. Effective rent equals $25 × 1.20 = $30.00 per USF.
- Even though Suite B’s RSF rate is lower, Suite A is the better value on a usable basis.
Salt Lake County norms
Load factor ranges vary by building type and age in Salt Lake County. Suburban low-rise offices and single-story business parks often run about 1.05 to 1.12. Mid-rise and downtown buildings are commonly 1.12 to 1.25 depending on elevator banks and floorplate efficiency.
High-rise downtown towers or buildings with large cores, major lobbies, or extra shared amenities can reach 1.15 to 1.30 or higher. Newer Class A towers tend to be more efficient, while some older stock can be higher and less consistent. Suburban business parks along the I-15 corridor, West Valley, South Jordan, Draper, and the Airport area often deliver lower factors due to simpler cores.
Total cost: include more than base rent
To compare options fairly, convert everything to a per USF basis. Include base rent, operating expenses, taxes, utilities, insurance, parking, and any recurring charges. For NNN leases, base rent is quoted per RSF and OpEx is a separate per RSF charge.
For full-service gross leases, the quoted rent usually includes OpEx. Concessions like free rent or extra tenant improvement dollars should be amortized to a per USF per year figure over the term. This keeps your comparison apples to apples.
Practical scenarios
Scenario A: Suburban 2-story park. USF equals 5,000; load factor 1.07; RSF equals 5,350. Quoted rent of $22 per RSF produces $23.54 per USF. If CAM is $6 per RSF, that equals $6.42 per USF, for a total of $29.96 per USF.
Scenario B: Downtown tower. USF equals 5,000; load factor 1.22; RSF equals 6,100. Quoted rent of $28 per RSF produces $34.16 per USF. If CAM is $8 per RSF, that equals $9.76 per USF, for a total of $43.92 per USF.
Pitfalls to avoid
- Terminology mismatch: load factor, add-on, loss factor, and core factor are not always used the same way. Get the math in writing.
- Unclear base: confirm if rent is per RSF or per USF, then request both equivalent rates.
- Floor differences: load factor can vary by floor due to cores, lobbies, or riser space. Verify the factor for the specific suite.
- Measurement method: confirm whether the landlord is using BOMA 2017 or another standard. Different methods change usable area.
- Hidden inclusions: clarify how vertical penetrations, atriums, balconies, and amenities are treated. Ask for a breakout.
- CAM math: confirm whether operating expenses are billed on RSF or USF. Mixed bases can create errors.
- TI mismatch: if TI is quoted per RSF but rent is negotiated per USF, convert so the value aligns with your costs.
- Sublease traps: subleases often list only usable area. Convert carefully before you compare.
- Flyer vs lease: marketing flyers can omit the applied load factor. Trust the lease numbers, not the flyer.
What to ask before you sign
- Is the quoted rent per RSF or per USF? Request the equivalent rates for both.
- What are the suite’s USF and RSF and the exact load factor math? Ask for the formula and floor plans.
- Which measurement standard is used, such as BOMA 2017? Confirm it in the lease exhibits.
- Is the load factor building-wide or floor-specific for this suite? Verify differences.
- Can I see a plan showing measured USF and the common areas used in the calculation? Save it with your lease.
- How are OpEx, taxes, and utilities billed, and can I see a sample reconciliation? Ask for recent statements.
- How do TI allowances, free rent, and escalations convert to a per USF per year figure over the term? Compare on a single basis.
- Can we include the agreed load factor, measurement method, and floor efficiency representations in the lease schedule? Put numbers in writing.
When load factor helps or hurts
A higher load factor can reflect more shared amenities, larger lobbies, or more elevators. That can improve experience and image but increases effective cost per usable foot. A lower factor often means efficient floorplates and smaller cores, which reduces effective rent for the same usable area.
For some tenants, a premium common area package is worth it. For others, efficiency and cost control win. The key is to convert to a per USF basis and decide what matters most to your operation.
The bottom line for Salt Lake
In Salt Lake County, building type and age drive significant differences in load factor and effective rent. Suburban parks along I-15 often produce more usable space per dollar, while downtown towers can offer better image and amenities with a higher factor. You protect your budget by translating every number to a per USF basis and confirming the measurement method.
If you are an owner, present both USF and RSF and the measurement exhibits to earn tenant trust. If you are a tenant, insist on the math and include total occupancy costs in your analysis. A clear model puts you in control.
Talk through your numbers
If you want a quick, reliable second set of eyes on your Salt Lake County office options, reach out. We can translate proposals to a per USF basis, benchmark by building type, and spot gaps in the measurement exhibits before you commit. For practical, senior-level guidance on leasing and negotiations, connect with Dan Rip. Schedule a free consultation.
FAQs
What is a fair office load factor in Salt Lake County?
- Suburban low-rise often runs about 1.05 to 1.12, mid-rise and downtown commonly 1.12 to 1.25, and high-rise or amenity-heavy buildings can reach 1.15 to 1.30 or higher.
How do I convert a quoted RSF rent to a usable basis?
- Multiply the rent per RSF by the load factor to get rent per USF, then use that figure to compare suites.
Does a full-service gross lease change how I compare costs?
- Yes, full-service quotes usually include OpEx, but you should still convert the total to a per USF basis for fair comparisons.
Can load factor vary by floor in the same building?
- Yes, floors with larger lobbies, risers, or different cores can have different factors, so verify the suite’s specific numbers.
Which measurement standard should I ask for in Salt Lake?
- Ask for BOMA Office Standard 2017 or the exact method used, then require it in the lease exhibits with supporting plans.
How do TI allowances interact with load factor in comparisons?
- Convert TI allowances and concessions that are quoted per RSF into a per USF per year value to align with your usable-cost analysis.
