Common Area Allocation to Retail Tenants

Gensler-retailQuestion: Are common areas apportioned to the Gross Leasable Area of retail tenants?

Answer: The short answer is “no”.

Gross Leasable Area (GLA) is a space classification used to measure floor area in retail buildings and is defined in the BOMA Retail Standard (ANSI/BOMA Z65.5-2012). Under the BOMA Retail Standard common areas are not factored into a tenant’s Gross Leasable Area because it is normal for operating expenses for common areas to be apportioned between tenants based upon their GLA. This is different than the case in office buildings.

BOMA “store area” was defined in the previous BOMA Standard published in 1996 and intended for application only in office buildings and not in retail buildings. Store area is leased based upon its rentable area, which includes an allocation of common areas by application of an R/U ratio. Store area was omitted from the BOMA 2010 Office Standard.

Under the 2010 Office Standard (ANSI/BOMA Z65.1-2010) a retail tenant is deemed to be an occupant. Occupant area is leased based upon its rentable area, which includes an allocation of service and amenity areas by application of a load factor. View the original post and citations on boma.org (link to Best Practice)

Citations

Floor Area Measurement Best Practices #4
Gensler’s Area Analysis team has contributed to a number of BOMA Best Practices, published on BOMA.org.

BOMA Approval:
Approved February 4, 2014
The Floor Measurement Standards Committee of BOMA International has approved this Best Practice to provide guidance in addition to that included in the BOMA 2010 Office Standard. This Best Practice does not modify the BOMA 2010 Office Standard published as ANSI/BOMA Z65.1-2010 but may be considered for inclusion in future updates of that publication. The provisions in section of the Legal Notice page of ANSI/BOMA Z65.1-2010 are included herein by reference. View the original post and citations on boma.org.

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