In this article, you'll learn:

  • What common areas are in multi-tenant office buildings.
  • How landlords calculate your pro-rata share of common area space.
  • Why you pay for common areas beyond your leased space.
  • How common area charges are added to your rent and operating expenses.

If you lease space in most multi-tenant office buildings, you won't only be paying for the space inside your suite's walls. Usually, the building's owner and/or management will also charge you for your share of the common area in the building. This means that your 10,000 square foot space could actually cost as much as an 11,000 to 12,000 space.  Here is how this happens -- and works.

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