If you are involved in leasing or managing commercial real estate, you have probably come across the term Gross Leasable Area (GLA). GLA refers to the total amount of floor space available for lease within a property. In this post, we will answer the 6 most popular questions about Gross Leasable Area in commercial real estate.
Gross Leasable Area (GLA) is the total floor space that is available for lease within a commercial property. It includes all areas that can be leased by tenants, including retail space, office space, storage areas, and common areas such as hallways and restrooms.
The GLA calculation includes all of the floor area that is available for lease to tenants. This includes all finished spaces as well as any unfinished spaces that could be leased to tenants. The calculation does not include parking areas or any other space that is not available for lease.
GLA is an essential factor in lease negotiations. It determines the amount of rent a tenant will pay and influences other lease terms such as operating expenses and common area maintenance charges. When negotiating leases, landlords and tenants must agree on the GLA measurement to ensure fair and accurate rent calculations.
When managing a commercial property, understanding the GLA measurement is essential for determining rents, calculating operating expenses, and managing tenant relations. Property managers must ensure accurate measurements of GLA are taken to avoid disputes with tenants over rent calculations.
GLA has a significant impact on retail space because it determines how much rent retailers will pay. Retailers typically require larger spaces than office tenants or storage tenants, so they will pay more per square foot for GLA. Retailers also prefer spaces with high visibility and accessibility, so the location of GLA within a property can impact its value.
GLA can help in tenant relations by providing a clear understanding of the amount of space a tenant is leasing and how much rent they should be paying. This clarity can prevent disputes and misunderstandings between landlords and tenants. Additionally, accurate GLA measurements can help attract and retain tenants by ensuring fair rent calculations.
In conclusion, understanding Gross Leasable Area (GLA) is essential for anyone involved in commercial real estate leasing or property management. Accurate measurements of GLA are crucial to ensuring fair rents, calculating operating expenses, and maintaining positive tenant relations.
