What Does GLA Stand For In Real Estate?

According to ANSI standards, “gross living area” (GLA) refers to the most commonly used term in home appraisal reports.

GLA is the abbreviation for “Gross Leasable Area” in the real estate sector. It is the most fundamental measure of the floor space available for lease or rental in commercial properties. GLA refers to the room that tenants can use and that provides rent for the property owner.

In the real estate industry, GLA provides an essential gauge of the value and size of commercial properties, including commercial buildings, malls, and retail space. It covers all rooms that can be leased, which include offices, retail stores, common areas, and occasionally even parking or storage spaces. The GLA calculation generally excludes spaces that are not leasable, such as hallways, stairs, or mechanical rooms, with a focus only on rentable spaces.

How Do You Determine The GLA Area?

Gross leasable area (GLA) is determined by measuring the space from the middle of a wall or another partition that divides tenants from lease lines within shared spaces. Also, it takes into consideration walls that are kept from tenants.

Calculating the leasable area of commercial properties involves several steps and aspects. The process usually consists of measuring individual spaces, considering common areas, and excluding areas not deemed leasable. Here’s a comprehensive description of how to calculate GLA, which is divided into sections for a better understanding:

Measure Individual Spaces

First, evaluate the size of each leasable space in the property’s commercial area. This includes office spaces as well as storage spaces, retail stores, and any other space that is available for lease. Take measurements of each room’s length and width with either a tape measure or laser measuring equipment.

Multiply the length times the width to determine how much square footage is in each space. Break spaces with irregular shapes into smaller squares or rectangles and calculate their respective square footage.

Account for Common Areas

Common areas refer to common areas in commercial buildings that aren’t explicitly leased out to tenants but are necessary for accessibility and function. Common areas are hallways, lobbies, restrooms, stairs, elevators, or utility spaces. While these areas aren’t directly available for lease, they contribute to the overall worth and efficiency that the house enjoys. Find the area of each common space the same way you would for each room.

Exclude Non-Leasable Areas

Certain areas in commercial properties aren’t classified as leasable and, therefore, should not be included in a GLA calculation. These are typically utility closets, mechanical room areas, janitorial spaces, or maintenance zones. Take their square footage in these spaces individually and subtract their totals from the total area calculation.

Calculate Total GLA

After you’ve measured each of the leasable areas, common areas, and excluded areas that are not leasable, you can calculate the GLA for the entire property. Add all the square footage for the leasable spaces together with the standard room. Next, subtract the square footage of non-leasable spaces. The result is the gross leasable area (GLA) of this commercial real estate.

It’s important to remember that the method used for formulating GLA could differ based on local laws and industry standards. In addition, there could be additional considerations for specific properties, like mixed-use developments or those with many floors. A professional appraiser or real estate professional can help assure the accuracy of GLA calculations in complex situations.

What Is The GLA Size Of The Building?

The Dictionary of Real Estate Appraisal has defined GLA as “total area of completed above-grade residential spaces calculated by measuring the outer size of the structure. It comprises only habitable, finished, above-grade living spaces.

Definition of GLA Building Size

GLA Building size refers to the gross leasable area (GLA) measured within an individual structure or building. It is the total leasable space that tenants can use within the building, which excludes standard rooms and areas that are not leasable. GLA Building size is an essential metric used by the real estate market to determine the potential, value, and profit of commercial properties.

Understanding Gross Leasable Area (GLA)

Before we get into the GLA size of buildings, it is essential to comprehend what a metastable area (GLA) is and how it transfers to the total floor space within commercial buildings that tenants may lease or rent. It includes all leasable areas, including offices, retail stores, storage areas, and other rental units. GLA does not include non-leasable spaces, including common areas such as halls, mechanical rooms, or utility rooms.

Calculation of GLA Building Size

To determine the GLA building’s dimensions, it is necessary to conduct a thorough measurement and calculation procedure. These are the main steps to follow:

Measure Individual Leasable Spaces

Take measurements of each leasable area within the building, such as offices, retail units, and storage spaces. Utilize accurate measuring tools like tape measures or lasers to determine the width and length of each room. Multiply the length by the width to determine how much square footage is in the area. Repeat this procedure for all leasable spaces inside the property.

Account for Common Areas

Determine and quantify the common areas in the building that are utilized by several tenants. This could include corridors, elevators, lobbies, staircases, bathrooms, and other standard amenities. Determine the area for each area individually. Although common areas aren’t directly leased, they are essential to the general functionality and accessibility of the building.

Exclude Non-Leasable Spaces

Find non-leasable areas in the building that must be removed from the GLA calculation. They typically comprise utility closets, mechanical spaces, maintenance rooms, janitorial spaces, and similar spaces. Take your square footage for each space that is not leasable and subtract that total from the total area calculation.

Calculate the Total GLA Building Size

Add the square footage of the leasable spaces as well as common areas in the building. Next, subtract the square footage of rooms that are not leased. The resulting figure is the GLA area of the building and represents the total amount of space that is leasable to tenants.

What’s The Most Essential Thing In The Appraisal Of Real Estate?

In real estate appraisal, GLA stands for gross leasable area. It is an essential measurement used by appraisers in order to determine the worth and marketability of commercial properties. GLA is the sum of all areas that can be leased within a building, excluding common areas and spaces that are not leasable. Appraisers use GLA as a primary element in determining the value of a property and rental income potential, along with overall competition in markets.

Importance of GLA in Real Estate Appraisal

GLA is a significant factor in the appraisal of real estate due to a variety of reasons. Appraisers view GLA as an essential indicator of a property’s earnings, market demand, and overall value. These are the primary reasons GLA is crucial in real life:

Determining Rental Income Potential

One of the primary purposes of GLA in the appraisal of real estate is to assess the potential for rental income from commercial property.

When calculating GLA, appraisers can evaluate the available space for tenants and estimate the amount that could be earned through rent. GLA can be used as a base to evaluate the income-based approach for appraisal, where rent income potential is the primary aspect to consider.

Comparative Market Analysis

Appraisers employ GLA to perform a comparative market analysis that requires comparing properties within the market to establish their relative value. GLA is an essential measure to compare the properties of similar dimensions and functions. Appraisers look at GLA together with other property characteristics to create precise comparisons and evaluate the competitiveness of the market.

Valuation of Income-Generating Properties

In assessing properties that generate income, for example, retail centers, office buildings, or multifamily complexes, GLA is an important factor. Appraisers look at the GLA along with rental rates in the market to determine the potential income stream. This information is vital to determining the value of the property by using the income approach, in which the anticipated income will affect the appraised value.

Space Utilization and Efficiency

Appraisers evaluate the GLA to determine the efficiency and space utilization of commercial properties. Effective utilization of the space available for lease increases the value and marketability of the home. Through analyzing the GLA, appraisers can assess how efficiently the property’s space is planned and used, which affects the property’s overall appeal and potential rental income.

Measurement and Calculation of GLA in Real Estate Appraisal

To determine the GLA in the appraisal of real estate, the appraisers must follow a strict method of measurement and calculation. The key steps to follow:

Measure individual leasable spaces

Appraisers evaluate each leasable space in the property, which includes offices, retail units, and other spaces that rent. They employ precise measuring instruments like tape measures or lasers to determine the width and length of each space. Multiplying length by width will give an estimate of the area that is square for each leasable space.

Account for Common Areas

Appraisers assess and evaluate the common areas of the property, like hallways, lobbies, elevators, and common amenities. While common areas aren’t directly leased, they do contribute to the overall function and value   the house Appraisers evaluate the area in each of the common areas individually.

FAQ’s

What does GLA stand for in real estate?

GLA stands for Gross Leasable Area in real estate.

What is the significance of GLA in real estate?

GLA represents the total floor area within a building or a specific portion of it that is available for lease or rent. It is a crucial measurement used to determine the rentable or leasable space within a property.

How is GLA calculated in real estate?

GLA is calculated by measuring the total floor area of a building, typically on a specific level or within a defined section. It includes all the rentable or leasable spaces, such as offices, retail units, or residential units, excluding common areas like hallways, stairwells, and utility rooms.

Why is GLA important for real estate investors and tenants?

For real estate investors, GLA helps determine the income potential and profitability of a property. It is a key factor in assessing rental rates, lease negotiations, and overall investment returns. Tenants, on the other hand, rely on GLA to understand the available space for their business operations and to negotiate lease terms and rental costs.

How does GLA differ from total square footage in real estate?

Total square footage refers to the entire floor area of a building, including both leasable and non-leasable areas. It encompasses all spaces within a property, such as common areas, hallways, mechanical rooms, and storage areas. GLA, on the other hand, represents only the leasable or rentable spaces within a property, excluding the non-leasable areas.

Are there any other similar terms or acronyms related to GLA in real estate?

While GLA is the most commonly used term, there are other acronyms and terms that refer to similar concepts. Some examples include Net Leasable Area (NLA), Rentable Square Feet (RSF), or Usable Square Feet (USF). These terms may have slight variations in how the measurements are defined, but they generally serve the purpose of indicating leasable space within a property.