In this article, you'll learn:

• What load factors and common area charges are in commercial leases.
• How these charges are calculated and added to your rent.
• Why shared building amenities can save you money through economies of scale.
• How load factors can provide valuable building features at a low cost.

When you lease commercial real estate, you typically end up paying load factors, common area charges, or both. At first glance, this might not seem like a great deal. After all, you're paying for your space AND you're paying for space you don't use and features that the whole building shares. However, what these charges really mean is that you're harnessing the power of economies of scale to get more value than you would get if you were completely on your own.