You may have been searching for a commercial property and wondered. There are numerous ways to determine the area of a building or property in the real estate market, especially in relation to commercial real estate. As a result, it is crucial to comprehend how they differ so that you can know exactly what you are paying for while searching for your next business property.
We have gone through and explained some of the key terms used when calculating the area of a commercial property.
Table of Contents
What does gba (gross building area) mean?
The measurement unit GBA, or gross building area, is used in commercial property values. This measurement is distinct from the form of measurement used most often for residential real estate, known as GLA or Gross Living Area.
GBA covers the sum of all floors and the total enclosed space of a structure. The slab area, excluding elevator shaft apertures, is calculated from the outside surface of the exterior walls.
What is gla (gross living area)?
The Dictionary of Real Estate Appraisal describes gross living area as “the total area of finished, above-grade residential space; computed by measuring the outer perimeter of the structure and includes only finished, habitable, above-grade living space.” The gross living area, or simply the livable area of the property, includes both heated and cooled regions but often excludes finished basements and attic spaces.
Additionally, GLA will frequently comprise spaces that the tenant may use but not necessarily inhabit. This can apply to shared spaces like the elevator, stairwells, and public restrooms. Common facilities, elevators, public restrooms, stairwells, and other elements of the building that the tenants do not occupy are typically included.
What is the difference between gba and gla?
Commercial real estate employs a distinct unit of measurement since even regions that are not heated or cooled may still be functional parts of the building. GBA therefore considers the whole or gross building area. Underground area is typically not factored into a GBA evaluation’s square footage calculation, but it is included in the appraisal assessment.
What is nla/nra (net leasable area/net rentable area)?
NLA/NRA, which stands for Net Leasable Area/Net Rentable Area, is another word that may be employed. This is used to calculate the total amount of floor space that a renter is eligible to rent. This is different from GBA in that it typically excludes communal spaces like a shared pantry, shared restrooms, or reception areas, as well as spaces devoted to the building’s heating, cooling, and utility needs. Tenants and property owners should also be aware of the term BUA or Built-Up Area. This is the sum of all usable areas, circulation areas, service areas, balconies, plus the area of all factored non and semi-enclosed areas.
How to calculate gba?
GBA is estimated by measuring the outside finished surface of the building’s permanent outer walls, without taking into account elements like stairwells, walkways, shared spaces, common facilities, along with inaccessible or non-leasable regions. This kind of computation is typically performed for larger, more square footage commercial spaces. Therefore, to briefly respond to the question, “What does GBA signify in commercial real estate?” it is merely one of many units of measurement for commercial property.
It can be challenging to navigate the commercial real estate market because there are so many specialized phrases and terminologies. Working with a reputable real estate agent that specializes in commercial real estate is crucial.
Commonly, ANSI standards are not used to determine the square footage of commercial buildings. The industry-accepted measurement unit for commercial buildings is gross building area since they are frequently traded for business occupancy or rental income (GBA). All heated and cooled spaces are normally included in the gross building area. If the appraiser decides that the finished, access, and utility are comparable to the above-grade parts of the building, basements may be taken into account in this calculation. Industrial buildings sometimes feature unheated and/or uncooled sections in the GBA since the usage of such space is frequently essential to the operation of the GBA in Commercial Real estate property.