Understanding Share Factor Denominators
The Expense Participation Calculation Generation program (R15110) calculates the tenant's share factor by dividing the area of a unit by the total area of all of the units in the building or for the property. You can manipulate the tenant's share factor by specifying unit areas to exclude from the total area (denominator) amount in the Share Factor Denominator Revisions program (P15122). You can identify which unit areas to exclude from the calculation by entering an E.P. unit type, a share factor area value, or both. The system retrieves the area information for the unit from the Gross Lease Occupied Areas table (F15141) based on the area method that you specify. For example, if you want the system to exclude all unit areas with more than 10,000 square feet, you must specify whether the 10,000 square feet is a GLA, GLOA, or the average GLA or GLOA.
In addition to specifying the unit areas to exclude from the total area, you can also set up a cap floor, which is a percentage of the GLA for the building or property, that establishes a minimum area value to use in the calculation. The system compares the calculated denominator to the cap floor and uses the greater of the two values as the denominator for the expense participation calculation.
You can use the E.P. Information program (P15012) to add the share factor denominator to the expense participation information for applicable leases. You can enter a share factor denominator only with computation methods B, P, N, O, U, V, X, and Y and when an E.P. code is not specified. You can enter a different share factor denominator for each line of expense participation information that you set up.
The system stores share factor information in the Share Factor Denominator Header (F150122) and Share Factor Denominator Detail (F150123) tables.