What does the term 'gross leasable area' (GLA) refer to?

Study for the BOMA Foundations Exam. Enhance your skills with flashcards and multiple choice questions. Each question comes with hints and explanations to help you get confident for your test!

The term 'gross leasable area' (GLA) specifically refers to the total floor area of a building that is designed for tenant occupancy and is intended for exclusive use by tenants. This concept is crucial in the commercial real estate industry because it defines the space that can be leased out to tenants. GLA includes all areas that tenants can utilize, such as retail space, office areas, and other regions designated for tenant use, while excluding common areas that are not for exclusive tenant use, such as hallways, restrooms, and lobby spaces.

This distinction is important for property owners and investors as it helps in determining rental income potential and calculating occupancy rates. The focus on tenant occupancy indicates that GLA is a measure of revenue-generating space, rather than just any space within a building. Understanding GLA is essential for effective property management and leasing strategies.

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