What does 'net square feet' refer to in real estate?

Net square feet refers to the space available for direct lease to tenants, and it represents the usable area within a building that can be utilized for conducting business activities. This measurement excludes areas not available for direct tenant use, such as common areas, hallways, mechanical rooms, and restrooms. When calculating net square feet, the focus is on the actual space occupants can utilize, making it crucial for landlords and tenants alike when discussing leases, as it impacts rental rates and space planning.

The other definitions provided in the options do not accurately capture the essence of net square feet. For instance, the total building size including all areas would pertain more to gross square feet, which encompasses every square foot within the building, zoning out the distinction needed for net usable space. Similarly, common facilities comprise areas intended for shared use and are typically excluded from the net square footage calculation, which focuses solely on tenant-occupied spaces. Finally, measuring land only does not relate to the concept of square footage connected to buildings or space dedicated for tenant use, reinforcing the distinction of net square feet as primarily concerning the leaseable space within a structure.