EXPERT GUIDE / COMMERCIAL REAL ESTATE

Area is not
one number.

The same building can have different design, internal, usable, leasable and billable areas. The measurement boundary, standard and purpose determine the result.

COMPARE TERMS ↓
10AREA TERMS
1 m²NEEDS A DEFINITION
3SOURCES: LEASE · DRAWING · REALITY
WHY IT MATTERS

Define it first.
Measure it second.

A client, landlord, lender and designer may each use a different area metric — and each figure can be correct for a different purpose. The problem starts when figures are compared without a common methodology.

AUDICO practical ruleEvery area figure should state the metric, standard, measurement boundary, source record, date and responsible party.
QUICK COMPARISON

Which figure are
you looking at?

The table shows typical use. The exact scope of every metric must be verified against the relevant method and records.

TermBasic boundaryTypical useWhat to verify
GEAExternal perimeterWhole-building analysis, insurance, benchmarkingBalconies, canopies, atria and open areas
GIAInternal face of enclosureCost, technical analysis, industrial propertyShafts, atria and internal construction
NIANet functionally usable interiorOccupation, capacity and space comparisonExcluded circulation, plant and common areas
GLA / NLAContractually defined leasable areaRent, income and occupancyLease definition and adopted standard
GFA / BUADesign or local definitionDesign, development and planningProject terminology and local rules
DETAILED EXPLANATION

Ten terms.
One shared logic.

For every term we distinguish the physical boundary, commercial purpose and risk of misuse.

01 / GEA

Gross External Area

GEA describes building area measured to the outside of the external enclosure. It is useful when the complete built envelope, including perimeter construction, matters rather than only internal space.

Use
Insurance, whole-building comparison, cost and volume metrics.
Review
Whether the method includes covered external areas, balconies, canopies, atria, mezzanines and links between buildings.
02 / GIA

Gross Internal Area

GIA is measured to the internal face of the external enclosure. It captures gross internal capacity, generally before deductions for internal walls, columns, circulation and plant areas under the adopted method.

Use
Technical comparison, cost rates, industrial and logistics buildings.
Review
The façade measurement line and treatment of major voids, shafts, atria and multi-storey spaces.
03 / NIA

Net Internal Area

NIA represents internal area available for functional occupation after exclusions required by the adopted standard. It may be more useful for capacity and operating decisions than a gross figure.

Use
Workplace planning, layout efficiency and practical occupancy capacity.
Review
Which circulation, sanitary, plant and common areas were deducted; NIA is not automatically NLA.
04 / GFA & BUA

Gross floor and built-up area

GFA and BUA often appear in design, development and planning records. Their meaning is not globally uniform: GFA may denote aggregate floor area while BUA may describe a footprint or a broader built area.

Use
Design schedules, development density, development and cost metrics.
Review
The definition in the specific project, building rule or planning document — the abbreviation alone is insufficient.
05 / GLA & NLA

Leasable areas

GLA and NLA are used in leasing, investment modelling and occupancy reporting. In practice they are not safely interchangeable universal figures. Lease definitions, the measurement standard and common-area allocation govern.

Use
Rent calculation, rent roll, occupancy, NOI and asset income comparison.
Review
Whether the rent roll, lease, drawings and invoices reconcile under the same methodology.
06 / BILLABLE AREA

Billable area

Billable area is the contractual base for rent or charge calculations. It may comprise exclusively occupied space, an allocated share of common areas and other contractually agreed areas.

Illustration
With 1,000 m² of net area and an agreed 12% add-on, the calculation base is 1,120 m². This is an illustration, not a universal formula.
Review
Base area, formula, rounding, layout changes and whether the same base is used for service charges.
07 / ADD-ON

Common-area factor

An add-on factor allocates a share of common areas to exclusive space. It may be calculated at floor level, building level or in several stages depending on the lease and standard.

Use
Allocation of lobbies, corridors, sanitary, amenity and other shared areas among occupiers.
Review
Calculation denominator, exclusions, vacant units, changes during the term and reconciliation to the whole building.
08 / USABLE AREA

Usable floor area

Usable area describes space practically available for its intended function. It may be defined by law, design documents, a standard or a client's internal rules, so it should not be equated with NIA or NLA without verification.

Use
Capacity planning, building passporting, utilisation comparison and refurbishment preparation.
Review
Definition source and treatment of partitions, storage, sanitary areas, circulation, balconies and height-restricted space.
09 / BOMA

BOMA standards

BOMA is not one fixed formula but a suite of measurement standards for different commercial property types. The result depends on asset class, standard edition, selected method and common-area allocation rules.

Use
Office, industrial, retail, mixed-use and other commercial buildings under the relevant standard.
Review
Full title and edition year, property type, calculation method and whether the stated area was actually produced under that standard.
10 / IPMS

International Property Measurement Standards

IPMS provides a common international measurement framework across building types and markets. It uses distinct terminology to reduce ambiguity in historic local terms and can be reported alongside a local method.

Use
Cross-border portfolios, finance, benchmarking, transactions and translation between measurement conventions.
Review
The specific IPMS basis, measurement boundary, component areas and any parallel reporting under local rules.
HOW WE WORK

We turn figures into
one control view.

The objective is not to declare one metric universally correct, but to show exactly what each figure means and where differences arise.

  1. 01

    Define the purpose

    Lease, finance, CAPEX, building passport, capacity or design decision.

  2. 02

    Build a register

    Leases, rent roll, drawings, BIM, cadastral and approval records.

  3. 03

    Verify the method

    Identify the standard, edition, boundaries, exceptions and allocation rules.

  4. 04

    Compare with reality

    Targeted measurement or 3D scan for discrepancies not explained by records.

  5. 05

    Issue reconciliation

    Difference schedule, method, risk and recommendation for the decision or contract.

PROFESSIONAL SOURCES

The method must be
traceable.

For international and portfolio assignments we follow the standard specified by the client or contract and verify its current edition. These links are orientation only; the specific document and edition govern.

IPMS Coalition — International Property Measurement Standards ↗BOMA International — Floor Measurement Standards ↗
FAQ

Frequently asked.

Not automatically. Billable area is governed by the contract and may use GLA, NLA, an add-on factor or other agreed components. Both definitions and calculation must be reviewed.
The one appropriate to the purpose, building type, market and contract. When comparing assets, consistency or a transparent conversion between methods matters most.
No. A scan provides accurate spatial data, while the standard defines the boundary and inclusions. The best result combines reliable data with an unambiguous method.
A source register, method statement, area schedule, explanation of differences, identified uncertainties and a recommendation on which figure to use for the decision.
LET'S TALK

Need to reconcile
portfolio areas?

We define the method, review the records and explain differences for use in contracts, financing and asset management.

info@audico.sk
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