What is Gross Leasable Area (GLA) in Commercial Real Estate?

I love talking about commercial real estate metrics, and GLA is one of the most useful numbers you'll need to know. Whether you're buying, selling, or leasing commercial property, understanding Gross Leasable Area shapes every decision you make. Let me break this down for you in plain English, so you can see exactly why GLA matters and how it affects your bottom line.

Gross Leasable Area (GLA): The total floor area of a commercial property that can be rented out to tenants and used to generate income, including both individual tenant spaces and common areas like lobbies, hallways, and restrooms. GLA is typically measured from the exterior walls of the building and is expressed in square feet or square meters.

Components of GLA

Let's talk about what actually makes up GLA. Think of it like putting together a puzzle - each piece serves a specific purpose. The main components fall into two categories:

Tenant spaces include:

• Retail units where stores display and sell their products

• Office spaces where businesses conduct daily operations

• Storage areas for inventory and equipment

Common areas include:

• Lobbies and entrances that welcome visitors

• Hallways and corridors connecting different parts of the building

• Restroom facilities for tenants and visitors

• Shared amenity spaces like break rooms or conference facilities

How GLA is Measured

Measuring GLA isn't as simple as pulling out a tape measure. The industry uses specific standards to ensure consistency. The Building Owners and Managers Association (BOMA) sets the gold standard for measurements in North America.

The process involves:

• Taking measurements from the outer edges of exterior walls

• Calculating load factors that account for shared spaces

• Properly allocating common areas among tenants

Importance of GLA in Commercial Real Estate

GLA isn't just another number - it's the foundation for many critical calculations in commercial real estate. Property owners use it to determine rental rates and calculate operating expenses. For investors, GLA helps determine a property's value and potential return on investment. Tenants use it to compare different properties and understand their true costs.

GLA vs. Other Area Measurements

You might hear other terms thrown around, so let's clear up any confusion:

• Gross Building Area (GBA): Includes ALL building space, even mechanical rooms and uninhabitable areas

• Net Leasable Area (NLA): Only includes spaces that can actually be leased

• Rentable Square Footage (RSF): Similar to GLA but may include different common area calculations

• Usable Square Footage (USF): The actual space a tenant can occupy

Impact on Different Stakeholders

Property owners need accurate GLA measurements to maximize their revenue potential and create effective marketing strategies. Tenants rely on GLA to plan their space requirements and budget for lease costs. Property managers use GLA to allocate maintenance resources and manage space effectively.

Common Misconceptions About GLA

I often see confusion about what counts in GLA calculations. Some people think mechanical rooms count (they don't), while others mistakenly exclude certain common areas. The key is following established measurement standards and making sure your lease clearly spells out what's included.

Best Practices for GLA Management

Success with GLA management requires:

• Regular measurements to account for building changes

• Detailed documentation of all calculations

• Clear lease agreements that specify how GLA affects rent calculations

Future Trends Affecting GLA

Commercial real estate keeps changing. Open office layouts, mixed-use developments, and smart building technology are reshaping how we think about and use space. These changes influence how we calculate and use GLA measurements.

Ready to Make Informed Real Estate Decisions?

Bellhaven Real Estate offers expert guidance on all aspects of commercial property, including professional GLA calculations and market analysis. Our team helps you make smart decisions about buying, selling, or leasing commercial space. Get in touch with us for a consultation about your commercial property needs.