Glossary / Space and measurement
Also known as: GLA
The total floor area designed for a tenant's exclusive use and occupancy, including basements, mezzanines, and upper floors. It is the measure most associated with retail and shopping centers, and it is the area that produces rent for the owner.
Wikipedia defines gross leasable area as the floor space available to be rented in a commercial property, including basements, mezzanines, and upper floors designed for tenant occupancy and exclusive use. It represents the area for which tenants pay rent, and so the area that produces income for the owner. It usually excludes corridors and other public areas.
BOMA's retail standard, ANSI/BOMA Z65.5, covers measurement of retail properties. When the 2010 version launched, FMLink reported that it included gross leasable area, defined as "the total enclosed floor area designed for the exclusive use of an occupant, including any basements, mezzanines or upper floors." the current BOMA retail standard is the 2020 edition.
In retail deals, rent is commonly expressed against the leasable area, so the GLA figure in the lease feeds directly into the rent. If your commission is calculated on rent, the GLA in the final lease is part of your fee calculation, and a measurement change between LOI and lease can change your number.
GLA also shows up in how shopping center costs are shared. Whether a tenant's Pro rata share of CAM charges is based on its GLA depends on the lease.
On retail deals, confirm the GLA in the lease matches the measured figure before you calculate your commission.
For example, a hypothetical retail tenant leases 3,000 square feet of GLA at a hypothetical $25 per square foot per year. Annual base rent is $75,000. If the space were remeasured at 2,800 square feet at the same rate, annual base rent would be $70,000.
