Key Takeaways: Commercial real estate tenants typically pay rent based on the square footage they occupy, but not all that space is usable. Common areas like hallways, bathrooms, and storage are factored into the rent despite not directly benefiting tenants. This is where the concept of load factor comes in – a crucial metric for CRE investments. What is Load Factor and Why Does it Matter in CRE Investing? Load factor is the ratio of a commercial property’s total rentable space to its usable space. It helps both tenants grasp how much space they’re truly utilizing and investors evaluate potential…