What are the benefits of a gross leasable area calculation?

Gross Leasable Area (GLA) Calculation is the total floor area within a commercial property, typically a retail center, designed for tenant occupancy and exclusive use, excluding common areas, that is used to calculate rent and evaluate a property's leasing performance.

How Gross Leasable Area Calculation Works

• GLA is measured as the total floor area designated for tenant use, excluding shared common areas such as hallways and public restrooms.
• Measurements typically follow standardized methodologies, such as those established by BOMA or ICSC, depending on property type.
• GLA is used as the basis for calculating rent per square foot and comparing leasing performance across similar properties.
• Occupancy rates and sales-per-square-foot metrics are often calculated relative to total GLA within a retail center.

What Are the Benefits of a Gross Leasable Area Calculation

• Provides a consistent, standardized basis for comparing rental rates and performance across different properties.
• Supports accurate rent calculations and lease negotiations between landlords and tenants.
• Enables meaningful benchmarking of sales performance and occupancy across retail centers.
• Assists appraisers and investors in evaluating a property's income-generating potential.

Best Practices for Calculating Gross Leasable Area

• Use industry-standard measurement methodologies consistently across all properties in a portfolio.
• Engage qualified professionals to conduct accurate GLA measurements.
• Re-measure GLA after any significant renovations or reconfiguration of tenant spaces.
• Clearly disclose the measurement standard used in leasing and marketing materials.

Accurate gross leasable area calculation is fundamental to fair leasing practices and reliable performance benchmarking across retail and commercial real estate properties.