What does Gross Leasable Area include?

Gross Leasable Area (GLA) refers to the total area that can be leased to tenants and is a crucial measure in real estate. It includes all spaces that are used for rent-paying purposes, which goes beyond just the usable space within individual units or offices. Specifically, GLA encompasses not only the usable area but also common areas that are allocated to the tenants, such as hallways, lobbies, restrooms, and shared facilities that contribute to the functionality and attractiveness of the property.

Including common areas in GLA is essential as it gives a more comprehensive understanding of the total space a tenant can utilize as part of their lease, which directly impacts rental values and profitability. It is critical for both landlords and tenants to consider these additional areas when negotiating leases or assessing the overall size and rental potential of a commercial property. This comprehensive approach distinguishes GLA from metrics that consider only the usable or exclusive areas, providing a clear picture of the total productive leased area within a building.