Gross leasable area

What is Gross Leasable Area?

Gross leasable area (GLA) is a measure of the total floor area available for lease by a commercial property. It includes all of the tenant spaces, common areas, and other areas that are available to be leased, and is used to calculate the rent or value of a property. GLA is an important metric for investors and developers looking to evaluate the potential returns on a property.

How is Gross Leasable Area Calculated?

GLA is calculated by measuring the total area of a building that is available for lease. This includes the total floor area of all tenant spaces, as well as any common areas that can be leased out. Common areas may include lobbies, corridors, hallways, restrooms, and other public spaces. GLA does not include areas that are not available to be leased, such as storage areas, mechanical rooms, and stairwells.

Examples of Gross Leasable Area

Here are some examples of how GLA can be used in commercial real estate:

  • Retail centers: GLA is used to calculate the total amount of floor space available in a shopping center, which is then used to determine the rental rates for tenants.
  • Office buildings: GLA is used to determine the total floor area of an office building, which is then used to calculate the rent for tenants.
  • Mixed-use properties: GLA is used to calculate the total amount of floor space available in a mixed-use property, which is then used to determine the rental rates for tenants.

Conclusion

Gross leasable area is an important metric for investors and developers to consider when evaluating the potential returns of a commercial property. By measuring the total area of a building that is available for lease, GLA can help to determine the rental rates for tenants and the overall value of the property.

Further Reading