A higher grossing factor implies which of the following about space?

• A. A more efficient space.
• B. Less efficient space.
• C. Higher rent per square foot.
• D. Larger usable area.

Answer: (B)

A higher grossing (load) factor means more gross area is devoted to non-usable space like corridors, lobbies, and mechanical rooms. That makes the space less efficient, because the same amount of usable space requires a larger total (gross) area. For example, if usable space is 1,000 square feet and the grossing factor is 1.20, the gross area is 1,200 square feet, so only 1,000 of 1,200 square feet are usable, giving about 83% efficiency. The takeaway is that a higher factor increases the share of space that isn’t directly usable, hence less efficient space.