Final answer:
Rentable square footage includes usable space plus a ratio of common areas, while gross square footage measures the total enclosed area of a building. These metrics are crucial for leasing matters.
Step-by-step explanation:
In real estate, rentable square footage refers to the total space that a tenant can use and is charged for, which includes both the usable space plus a portion of the common areas such as lobbies, restrooms, and hallways. In contrast, the gross square footage is the total area enclosed by the building, measuring the external dimensions, which encompasses all space within the building, including non-rentable areas. This distinction matters for tenants and landlords when it comes to leasing commercial spaces, as rentable square footage directly affects the rental amount whereas gross square footage is useful for understanding the total size of a building.