The rentable area is the amount of space that is allocated to a tenant in order to calculate the total rent owed by the tenant to the landlord. The rentable area consists of the space occupied or leased by the tenant plus an allocated portion of the areas in the building that are shared with other tenants such as the lobby or corridors.
Rents are generally quoted in terms of the rentable area, but this must always be confirmed with the landlord. The rentable area is multiplied by the rental rate to determine the total rent.
Rent = Rental Rate x Rentable Area
If the rental rate is $2 per square foot per month, and the rentable area is 1,250 square feet, then the rent is $2,500 per month.