Did you know that an estimated 30% of Commercial Real Estate in Austin is measured incorrectly? This incorrect measurement, known as phantom space, exists when the amount of square feet that a tenant pays rent on is greater or less than the actual amount of rentable square feet.
Though it is commonly a negligent mistake made in initially measuring the space, landlords have used this as a way to collect upwards of 10% in additional rent income on their buildings because tenants neglect to hire a professional to verify the amount of real rentable square feet that exists in a space. This means that you could unknowingly be paying up to 10% more for rent just because you took the landlord’s word for it and didn’t double-check for yourself. Over the term of your lease this inaccuracy could accumulate to thousands of dollars in unnecessary rent charges!
As your commercial real estate professional we advise you to hire an architect or space planner to measure your desired space before you sign your Austin Commercial Lease Agreement. By taking this step in the leasing process,you are protecting yourself from being overcharged and ultimately saving money if the results come in your favor. If the real measurement is greater than the amount listed, you are protected from paying for the extra space because the landlord made the mistake initially. If, however, the real measurement proves to be less than the amount listed, the landlord is almost always obligated to correct the amount of square feet to the correct number. This topic will be discussed further in future blogs about commercial lease agreements, but as a rule of thumb: it is better to be safe than sorry. Click here to read a previous blog about Commercial lease Agreements.