FAQ

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What is a load factor?
A load factor is an arbitrary percentage added on to the tangible square feet you occupy (useable square feet). All tenants pay their proportionate share of common areas: hallways, conference room, bathrooms, phone closets, janitorial closets, etc.

What is a “Gross Full Service” lease rental rate?
Under this rate the Lessor pays for all utilities (except telephone and data), including janitorial.

What is a “Modified Gross” rental rate?
Under this rate, the Lessee usually is responsible for all the cost of utilities, garbage, janitorial, etc.

What is a triple net (NNN) rate?
Commonly used when leasing retail or industrial property. The Lessee is responsible for all utilities, janitorial, garbage, and their share of property taxes, insurance and common area maintenance for the building.

How do I calculate my monthly rental obligation, if rental rates are quoted on a per square foot a year basis?
Your monthly rental rate would be calculated by multiplying your rentable square footage by the yearly rental rate, and then dividing the result by 12. For example, if you have 500 rentable square feet, and the annual rent per square foot is $14.00, 500 x $14.00 = $7000. $7000 / 12 = $583.34 a month.

What is an operating cost pass through?
American Property Management does not use this method, but landlords who do would tabulate their total operating costs for the building and you the tenant would be responsible for paying your share of these unknown costs.

Will my rental rate increase over the course of my lease term?
Yes. American Property Management uses the Consumer Price Index (CPI) as a barometer and your annual adjustment will be a minimum of 3%, but not greater than 5%. By using this method you know what your best and worst case scenarios are up front. There are no unknown costs to worry about.

If you have a question that isn’t here, ask us and we’ll get an answer to you.

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