Rentable area

Rentable area CRE

Rentable area, in South Africa, terms, is another word for gross lettable area (or GLA).

The value is expressed in either square meters or square feet.

Rentable area, aka GLA, is used to assign both rentals and expenses to tenants.

For example, let’s say there is 150 sqm of office. Both the office rental of R120 / sqm and rates and taxes recoveries of R25 / sqm will be applied to the 150 sqm GLA.

To avoid confusion

Another category of space, falling outside the definition of rentable area or GLA, but still attracting rentals from a tenant is: Supplementary area – rent attracting (but not expense attracting). This category is generally made up of space such as storage (office), terrace, yard etc. While a space-driven rental is charged, expenses for this space are not allocated to the tenant.

For example, let’s say there is a terrace of 20 sqm. Terrace rental at R60 / sqm will be charged on the 20 sqm space (but no share of the other costs will be assigned to the 20 sqm).

For more info

Click through to GLA

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