What Is Gross Leasable Area (GLA)?
GLA, or Gross Leasable Area, is a key measurement used to determine the total floor space present within a commercial property that may be leased to tenants. This metric does not include various common areas of these properties, such as lobbies, restrooms, and hallways. GLA focuses exclusively on spaces that produce rental income.
GLA refers to the entire floor space designated specifically for exclusive tenant occupancy and use, including upper floors, mezzanines, and basements. The measurement of GLA is taken from the midpoint of joint partitions, overhang driplines, and exterior wall surfaces. Essentially, GLA is the space of commercial properties for which tenants are accountable for paying rent – the income-generating portions of the property. BOMA provides an in-depth explanation of GLA.
It is important to understand GLA for the following reasons:
Property Valuation: GLA plays a critical role when determining the value of the commercial property. Both investors and appraisers use GLA to calculate the value of a property and its potential ROI.
Lease Agreements: Rent calculations and lease agreements are shaped in part by the Gross Leasable Area (GLA). The GLA value provides clarity when calculating usable space and rental cost. GBA (Gross Building Area) or Gross Usable Area may be a smaller number compared to GLA, however the rent is typically calculated on the GLA.
Efficient Space Management: GLA helps property owners and managers make better decisions regarding lease negotiations, the utilization of space, and the optimization of rentable space.
Comparative Analysis: GLA helps investors and tenants accurately compare different properties and, therefore make better investing or leasing decisions.
In the fluid commercial real estate landscape, having a proper understanding of GLA is foundational for successful property investment, leasing, and management.
Leveraging GLA for Success
If you want to leverage Gross Leasable Area (GLA) for optimum real estate decision-making, schedule a complimentary demo or leave us a message. Our team is here to provide personalized guidance and proven solutions designed to help you with your commercial real estate marketing needs.
