Net Leasable Area (NLA) and Gross Leasable Area (GLA) are two terms used in property leasing. Both indicate the area that can be leased to tenants, but they differ in what they include within these areas.
Net Leasable Area (NLA): This term refers to the total area within a property that can be leased for the exclusive use of a tenant. It does not include common areas such as hallways, restrooms, staircases, or elevators. It only includes the space that a tenant can exclusively use for their own needs.
Gross Leasable Area (GLA): This area includes the spaces within a property that are available to a tenant, including common areas. These areas encompass hallways, restrooms, staircases, and other common spaces. So if a tenant is paying for GLA, they are paying for all the spaces they can use, including those shared with other tenants.
When negotiating rent, it is important to know whether the price relates to the net or gross leasable area, as this can significantly affect the total costs.
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