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Electricity Requirements

Common Misconceptions

Electricity requirements of tenants are generally well understood by landlords but poorly understood by tenants. Tenants often hold misconceptions about the amount of wattage that is needed per floor, especially if they are Internet-related. In point of fact, as long as the tenant does not have a dedicated computer room, trading floor or some other large draw of power, the electricity provided under code is usually sufficient.

Electrical work is in high demand in this market and prices are high. Many companies attempt to pack their spaces with personnel which ends up requiring additional electrical outlets and costs additional money to install.

Code stipulates that office usage receive 6 watts per rentable square foot. This is sufficient for general office usage. Of concern from a leasing perspective is the methodology of billing: connected or demand. Landlords typically want to charge on a connected basis which assumes billing tenants as if every appliance was connected at the same time. In point of fact, at any given time, the electricity you use is less because not all appliances are on and in use at the same time. What you actually use is known as demand, a lower amount than connected. To the extent possible you should negotiate to pay on demand.



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