Negotiating RSF & Loss Factor: Why Square Footage Isn’t Always What It Seems
Most tenants walk into a medical office, like what they see, hear the square footage, and think they’re ready to sign. But before committing to any healthcare space, there’s a critical distinction you need to understand: Rentable Square Feet (RSF) versus Usable Square Feet (USF)—and the impact of the building’s loss factor.
Turn to Wexler Healthcare & Commercial Properties, the leader in healthcare real estate in New York City for over 40 years.
RSF Isn’t the Space You Actually Use
When landlords quote a space’s size, they’re quoting rentable square footage. That number includes:
The actual space inside your suite (USF)
Plus your share of common areas such as lobbies, hallways, restrooms, mechanical rooms, etc.
This means the RSF you’re paying for is always larger than the space you physically occupy.
Yes, You’re Paying for Space You Don’t Truly Use
That gap between RSF and USF is the loss factor—and it can be significant. Many tenants are surprised to learn that part of their rent goes toward areas they never directly use.
But here’s the catch: You can’t negotiate the loss factor. It’s tied to the building and applies to every tenant.
But You Can Negotiate the Rental Rate — and That’s Where Wexler Healthcare & Commercial Properties Makes the Difference
Even though the loss factor is fixed, the rental rate absolutely is not. And this is where having the right representation becomes invaluable.
Wexler Healthcare & Commercial Properties, NYC’s #1 trusted medical real estate brokers, specializes in breaking down the numbers behind the numbers.
Our team:
Calculates your true usable square footage
Analyzes the building’s loss factor against local market standards
Identifies when the RSF is inflated or overpriced
Leverages that information to negotiate a rental rate that accurately reflects the real, functional space you’re getting
With over 40 years exclusively in healthcare real estate, Wexler knows every building, every landlord, and every negotiation lever. We make sure you never overpay for “air.”
The Takeaway
Square footage alone doesn’t tell the whole story. Your negotiation power comes from understanding how much space you truly get—and how to price it correctly.
Before signing a lease, always evaluate the loss factor, adjust the economics, and work with experts who know how to leverage these numbers to protect your bottom line.
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