Difference Between NLA and GLA

NLA and GLA are the two most common area measurements in Australian commercial property, and they're often used interchangeably in conversation, which is a problem, because they're calculated differently and apply to different property types.

Net Lettable Area (NLA)

• Applies to: office buildings and office tenancies
• Measured to: internal finished surfaces of enclosing walls
• Excludes: lifts, shared toilets, tea rooms, common corridors, structural columns, plant and equipment areas

Gross Lettable Area (GLA)

• Applies to: industrial buildings, showrooms and freestanding supermarkets
• Measured to: the external face of walls
• Includes more of the total building footprint than NLA does for a comparable space, since it's measured to the outside of the structure, not the inside

Gross Lettable Area – Retail (GLA-R)

A related but distinct methodology, GLA-R applies specifically to retail tenancies within shopping centres, commercial buildings and strip retail. It's not identical to standard GLA, which is why confirming the correct methodology for a retail asset matters before measuring.

Why the Difference Actually Matters

Using the wrong methodology produces a wrong area figure, and a wrong area figure flows straight into rent, outgoings, and valuation. An industrial building measured using NLA-style internal measurement (rather than to external walls) will come out smaller than its correct GLA figure. An office tenancy measured to external walls instead of internal finished surfaces will come out larger than its correct NLA. Neither is a rounding error, both are the wrong number going into a lease.

Quick Reference

Property Type	Methodology
Office tenancy	NLA
Industrial building, showroom, freestanding supermarket	GLA
Retail tenancy in a shopping centre or strip	GLA-R

How Arya Designs Can Help

We confirm which methodology applies to your property before we measure, so you get the right figure from the start. We offer dedicated NLA Measurement and GLA Measurement services, or a combined Commercial Building Measurement for mixed-use buildings that need both applied across different tenancies.

Ready to Get Started?

Not sure which methodology applies to your property? Send us the details and we'll confirm before we quote.