How do you calculate the R/U factor?

To calculate the R/U factor, which stands for Rentable to Usable ratio, the correct approach is to divide the rentable space by the usable space. This calculation helps in determining how much of the total space is rent-generating versus how much is actually usable by the tenant. The R/U factor is particularly important in commercial real estate, as it allows landlords and tenants to understand the efficiency of the space being leased.

When you know both the rentable and usable areas, the R/U ratio can indicate how much of the rented space includes common areas, such as lobbies, restrooms, and hallways, which are not directly usable by the tenant. This ratio is critical in lease negotiations and is a standard metric in understanding the space dynamics.

Other methods mentioned, such as summing spaces or multiplying across areas, do not reflect the ratio essential for understanding the relationship between rentable and usable spaces. Therefore, the proper calculation of the R/U factor through the division of rentable by usable space is what accurately defines the relationship necessary in real estate assessments.