Gross Leaseable Area (GLA): The Total Leasable Area Including Shared Spaces

A comprehensive guide to understanding Gross Leaseable Area (GLA), its historical context, importance, applicability, and more.

Gross Leaseable Area (GLA) refers to the total floor area that is designed for tenant occupancy and exclusive use, including both private and common areas that the tenant shares with others. Understanding GLA is crucial for property managers, real estate investors, and business owners.

Historical Context

The concept of Gross Leaseable Area emerged with the development of large retail and commercial spaces. In the early 20th century, with the advent of shopping malls and office parks, accurate measurement of leasable space became imperative for calculating rental income and property valuation.

Types/Categories of GLA

• Retail GLA: Used in shopping centers and malls, where the area includes storefronts and shared spaces like food courts.
• Office GLA: Pertinent to office buildings, covering individual office spaces and shared facilities such as lobbies and meeting rooms.
• Industrial GLA: Relevant in warehouses and manufacturing plants, encompassing production areas and common loading docks.

Key Events

• 1960s: The rise of suburban shopping malls highlights the need for standardized GLA measurements.
• 1980s: The International Council of Shopping Centers (ICSC) introduces guidelines for measuring GLA.
• 2000s: Technological advances enable more precise measurements and virtual representations of GLA.

Detailed Explanation

GLA encompasses all the usable area within a building that can be leased to tenants. This includes:

• Private spaces: Individual stores or offices.
• Shared spaces: Hallways, restrooms, lobbies, and common areas accessible to all tenants.

Mathematical Formula

GLA is calculated by summing the areas of all leasable units within a property:

$$ \text{GLA} = \sum (\text{Private Areas} + \text{Common Areas}) $$

Charts and Diagrams

    graph TB
	    A[Total Building Area]
	    B[Private Leaseable Area]
	    C[Common Shared Areas]
	    D[Unleasable Space]
	    A --> B
	    A --> C
	    A --> D
	    B + C = GLA

Importance and Applicability

• Real Estate Valuation: Determines potential rental income and property value.
• Lease Negotiations: Affects rental rates and lease terms.
• Investment Decisions: Key metric for evaluating profitability and return on investment.

Examples

• A shopping mall with 500,000 sq. ft. of GLA includes retail stores, food courts, and common walking areas.
• An office building with 300,000 sq. ft. of GLA features individual office suites and shared meeting rooms.

Considerations

• Accurate GLA measurement requires precise and up-to-date floor plans.
• Legal definitions of GLA can vary by jurisdiction and property type.

Related Terms

• Net Leaseable Area (NLA): The area that can be exclusively occupied by tenants, excluding shared spaces.
• Building Owners and Managers Association (BOMA): Provides standards for measuring GLA.

Comparisons

• GLA vs. NLA: GLA includes shared areas; NLA does not.
• GLA vs. Rentable Area: Often used interchangeably, but rentable area might have additional local regulatory distinctions.

Interesting Facts

• GLA measurement can significantly impact property tax assessments.
• Advances in technology, such as 3D imaging, are revolutionizing GLA measurement practices.

Inspirational Stories

• Mall Revitalization: A dilapidated mall was revitalized by accurately measuring and optimizing GLA, leading to better tenant placement and increased foot traffic.

Famous Quotes

• “Real estate is an imperishable asset, ever-increasing in value. It is the most solid security that human ingenuity has devised.” — Russell Sage

Proverbs and Clichés

• “Location, location, location!” – Emphasizes the importance of real estate position, where GLA often becomes a key selling point.

Expressions, Jargon, and Slang

• Anchor Tenant: A major tenant, such as a department store, expected to attract shoppers and other tenants to a mall.
• Occupancy Rate: The percentage of the GLA that is currently leased.

FAQs

Q: How does GLA affect rental pricing? A: GLA influences the base rent charged to tenants, as it includes both private and shared spaces.

Q: Is GLA measured the same way globally? A: No, measurement standards can vary by country and type of property.

References

• International Council of Shopping Centers (ICSC) guidelines
• Building Owners and Managers Association (BOMA) standards

Summary

Gross Leaseable Area (GLA) is a critical metric in the real estate industry, encompassing all usable space within a property available for lease. Accurate GLA measurement is essential for property valuation, lease negotiations, and investment decisions, making it an indispensable term for anyone involved in commercial real estate.

By understanding GLA, stakeholders can make informed decisions that optimize space usage, enhance property value, and improve tenant satisfaction. Whether you’re a property manager, investor, or business owner, mastering the nuances of GLA is key to navigating the complex world of commercial real estate.