• Welcome to AppraisersForum.com, the premier online  community for the discussion of real estate appraisal. Register a free account to be able to post and unlock additional forums and features.

What is 'load factor'

Status
Not open for further replies.

SteveDickson

Freshman Member
Joined
Jan 23, 2006
Professional Status
Appraiser Trainee
State
Arizona
Anyone familiar with this term, it's use, and it's origin? It supposedly pertains to Gross Leasable...perhaps in relation to net leasable? I have searched this forum and the net for a credible explanation and source. Thanks....
 
The only load factor I am familiar with would be the load factor of the engineering components...i.e.- structural qualities of a beam or wall...

I have never heard it used in terms of income.
 
Steve:

In what context did you hear/see it used? (Use it in a sentence for us)
 
It's an office leasing term having to do with each tenant space's pro-rated share of the common area. Rather than paying CAM charges, the net leased area is multiplied by a load factor to get to a gross leased area. The lease rate is applied to the gross area. So if you have a 1,000 SF space for $20/SF, and a load factor of 15%, your actual rent will be $23,000.

Try googling "load factor lease"; there's lots of info about this.
 
Gee....I thought is was "how many appraisal assignments an appraiser can have at one time".
 
Where I come from load factor has more to do with fuel load in regards to areas prone to wild fires. In combination with zoning, average cross slopes and roads it can make the difference in a buildable or non-buildable (economincally at least) lot.

I know that's not what you were interested in. I was just throwing that out.
 
The wing load factor on a utility category airplanes is +4.4 g's and -1.76g's. Aerobatic category airplanes are +6 and -3.

I don't think that was the answer you were looking for either.
 
SteveDickson said:
Anyone familiar with this term, it's use, and it's origin? It supposedly pertains to Gross Leasable...perhaps in relation to net leasable? I have searched this forum and the net for a credible explanation and source. Thanks....

The term "load factor" has been around for years (since the '70s that I'm sure of). It is (was) used to allocate common area costs associated with leasing commercial space (office mostly) and has to do with the costs (utility, taxes, insurance...) of common areas such as halls, stairwells, elevator shafts... allocated to each tenant space. It's most often discussed in multi story office buildings where a single floor (or "plate") is leased to mutliple tenants. Each tenant's rent includes a pro-rata portion of the common areas. I've seen it used in retail shopping malls, but it's mostly an office building term.

Oregon Doug
 
Load factor is a number on a 1-10 scale I use to describe how I feel after an eat-a-thon.

I don't think that was the answer you were looking for either.
 
Status
Not open for further replies.
Find a Real Estate Appraiser - Enter Zip Code

Copyright © 2000-, AppraisersForum.com, All Rights Reserved
AppraisersForum.com is proudly hosted by the folks at
AppraiserSites.com
Back
Top