Which term is used to describe the actual space that a tenant occupies?

The term "usable area" accurately describes the actual space that a tenant occupies within a building. This area refers specifically to the square footage that can be utilized exclusively by the tenant for their operations, which does not include shared or common spaces in the building. Usable area is critical for tenants to know because it directly impacts their ability to function in the rented space and is typically the basis for rent calculations.

In contrast, the "rentable area" includes both the usable area and a proportionate share of the common areas within the building, which might include hallways, restrooms, and lobbies. This means that the rentable area is larger than the usable area because it accounts for shared spaces utilized by all tenants.

The term "gross leasable area" (GLA) further expands on this idea, generally referring to the total area that can be rented out, including applicable common areas. GLA is often used mainly in retail contexts.

"Common area" specifically refers to shared spaces in a building that are not directly leased to any one tenant but are accessible to all tenants and their clients, such as hallways and lobbies, and is not representative of the actual individual space a tenant possesses.

Understanding these distinctions is crucial in commercial real estate