What are considered lost areas in a commercial property?

In the context of commercial real estate, lost areas refer to spaces that are included in the building's overall footprint but are not directly usable for tenants in the way that leased space is. These areas typically encompass elements of the property that are necessary for the building's functionality but do not generate income on their own.

Common areas, which include amenities like elevators, stairwells, hallways, and restrooms, fall into this category. While these spaces are essential for the operation of the commercial property and contribute to the overall tenant experience, they are not part of the rentable area that generates direct revenue. Therefore, identifying these areas as lost areas is crucial for property management and leasing strategies, as they affect the overall efficiency and profitability of a commercial property.

The other choices do not fit the definition of lost areas. Rentable space is the area tenants can use and pay for, parking lots are often considered part of the property that can generate income, and exterior landscaping, while important for aesthetic appeal and property value, is not classified as lost space in the same way that common areas are.