Glossary Term Defined

This is a factor that represents a single factor assigned to all floors of a building. This factor is usually based on market conditions and therefore the name Market or Arbitrary Factor. When the Market or Arbitrary Factor is used, a single factor assigned all floors of the entire building and general applied to the multi-tenant Usable area of each floor. The Market or Arbitrary Factor is usually lower than the true factor generated from actual square footage calculations. This system is of using Market or Arbitrary Factors has no relationship to the true factor(s) or the true Rentable Areas. The Arbitrary or Market Factors is established as follows: Tenant Factor Tenant Conversion Factor (Arbitrary) is equal to Usable Area (multi-tenant) of a floor multiplied by the Arbitrary Conversion Factor which is equal to the Rentable Area. Example the true Floating factor may be 1.1923 while the Arbitrary or Market factor is set at 1.1200 Factor