NCIDQ IDFX Practice Exam

What is defined as the area available for assignment to a tenant, including the net area and secondary circulation space?

1. Usable area

2. Rentable area

3. Rentable-usable ratio

4. Efficiency factor

The correct answer is: Usable area

The term that refers to the area available for assignment to a tenant, which encompasses both the net area and secondary circulation space, is known as usable area. This space includes all areas that tenants can utilize, such as offices, conference rooms, and any common areas specifically allocated to them, making it critical for understanding the practical space available for tenancy. In commercial real estate, this distinction is essential for lease agreements and determining how much space tenants are actually getting for their use, as it directly impacts functionality and overall space planning. By including both the net area (which is the actual area occupied) and the additional circulation space (which is essential for movement within the space), usable area provides a comprehensive view of what is accessible to tenants. Other terms in the options relate to different aspects of space measurement. Rentable area typically includes both usable area and a proportionate share of common areas, which is why it wouldn’t directly answer the question. The rentable-usable ratio refers to the relationship between the two areas, and the efficiency factor measures how effectively the usable area is utilized concerning the overall space. However, none of these terms define the area available for assignment to a tenant as clearly as usable area does.