When looking for commercial real estate for lease, one of the most important considerations is to determine the amount of space that your operations will need. An office space calculator can help you decide on the floor space you need based on the amount of staff you have and the type of layout you’re looking for. However, once you’ve got the magic number – there’s still plenty to understand when it comes to leasing office space.

Commercial property jargon can be daunting and the terminology used just to describe the empty space can be complicated. Usable area pertains to the actual occupiable area of floor space for an office suite. The usable area of a building can change with the renovation and remodelling of floors. Building codes and updates can also affect the amount of usable area that is available. The usable area is calculated by calculating the amount of space from the outside wall to any dividers or interior walls. It is also sometimes referred to as net rentable area.

Floor rentable area – this is the fixed measure of the tenant’s pro-rata portion of an office floor, excluding any area that is lost to major vertical penetrations such as stairs or elevator shafts. The floor rentable area remains fixed for the life of the building regardless of remodelling and includes the individual tenant’s portion of any building common areas that are a service to the tenant, such as restrooms, common corridors and the elevator lobby on the tenant’s specific floor. Building common area – these are the common services and areas that are shared by tenants including restrooms, elevator lobbies and janitor closets. These areas are calculated as part of the floor rentable area for a tenancy but are not a part of the usable area.

Often a home buyer that is qualified for a mortgage will find their dream home is still out of their reach. Where their dreams are shattered is in the appraisal process. When calculating loans, mortgage lenders must base the loan on the appraised value of the home which can be different than the price listed by the realtor. The appraisal is just as important as your credit rating and can kill a home sale even if you are pre-qualified.

Before you start thinking of the appraisal as the Big Bad Wolf, consider that he or she must go through a process. As mentioned earlier, the neighborhood and the price of other properties that are comparable are a factor in the appraisal. The appraisal must also honestly assess what it would cost to rebuild the home. Usually the appraiser is selected by the mortgage loan officer. He or she will do a through inspection of the home inside and out. Research will be done on how much that home has been valued in previous years and what other homes are worth in the area.

Get a copy of the report and read over it thoroughly. If the appraisal is not what you expected, you can ask for a review. Many bank and mortgage loan officers ask for a review automatically. Your other options are: You can try to renegotiate the price with the seller, make up any differences with a larger down payment and ask your lender to override the report or at least, get another opinion.

If for any reason you are worried about the appraisal, you can prepare and avoid the surprise of a low appraisal. Most realtors offer a Comparative Market Analysis. Known in the industry as a “comp,” this report will list recent sales or homes in the area. Just keep in mind that the report may not take into the account the uniqueness of each home and any hidden deficiencies. No report can replace the appraisal when it comes to applying for the mortgage.

Low appraisals happen but if you are working with an experienced mortgage loan officer, you can avoid disaster. An experienced lender will recognize an extremely high or low sales figure and can predict that the appraisal will likely not turn out in your favor. And if an appraisal does catch you by surprise, an experienced lender can help you with options including obtaining a different type of loan or increasing the down payment amount. An appraisal does not have to kill your dreams of owning your perfect home.