New Launch - India Real Estate Report 2026.

What is Load factor leasing?

Load factor leasing is a commercial leasing method where tenants pay rent based on both their usable space and a proportionate share of common areas such as corridors, lobbies, and restrooms.

How It Works

  • Usable area is measured.
  • A load factor is applied.
  • The resulting rentable area determines lease payments.

Benefits

  • Distributes common area costs fairly.
  • Provides transparent space calculations.
  • Supports efficient building management.

Load factor leasing is widely used in office buildings and commercial developments.

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