Gross leasable area (GLA)
Gross leasable area (GLA) is a term commonly used in the real estate industry to describe the total floor area available for lease in a commercial property. This measurement includes all areas that can be leased to tenants, such as retail stores, office spaces, and storage facilities.
The GLA is calculated by measuring the total floor area of a building and subtracting any areas that are not available for lease, such as common areas, hallways, and stairwells. This measurement is important for property owners and tenants alike, as it helps determine the potential rental income and value of a property.
For example, a shopping mall may have a total floor area of 100,000 square feet, but only 80,000 square feet of that space is available for lease to retail stores. In this case, the GLA of the mall would be 80,000 square feet.
It is important for property owners to accurately calculate the GLA of their buildings in order to attract tenants and negotiate lease agreements. Similarly, tenants should be aware of the GLA of a property when considering leasing space for their business.
Overall, the gross leasable area is a key metric in the commercial real estate industry that helps determine the usability and value of a property.
Example of Gross Leasable Area Calculation:
- Total Floor Area of Building: 150,000 square feet
- Excluded Areas (common areas, hallways, etc.): 20,000 square feet
- Gross Leasable Area (GLA) = Total Floor Area – Excluded Areas
- Gross Leasable Area (GLA) = 150,000 sq ft – 20,000 sq ft = 130,000 square feet
For more information on Gross Leasable Area, you can visit Wikipedia.