PCA Method of Measurement Explained

Almost every commercial lease in Australia refers to the "Property Council of Australia's Method of Measurement" somewhere in its definitions section. Here's what that actually means, and why it's the standard the whole industry has converged on.

Where It Comes From

The Method of Measurement for Lettable Areas was originally developed by BOMA (the Building Owners and Managers Association) and is now maintained by the Property Council of Australia. It exists to solve one specific problem: without a shared standard, every landlord could measure a building differently, and area figures across the market would be meaningless for comparison.

What It Actually Defines

The methodology sets out precise rules for how to measure:

• Net Lettable Area (NLA) for office buildings and tenancies
• Gross Lettable Area (GLA) for industrial buildings, showrooms and freestanding supermarkets
• Gross Lettable Area – Retail (GLA-R) for retail tenancies within shopping centres and commercial buildings

For each, it specifies exactly where the measurement boundary sits (internal finished surface vs. external wall face), and what's included or excluded, structural columns, shared facilities, plant and equipment areas, and common circulation space.

Why a Standardised Methodology Matters

Without it, two landlords could market functionally identical tenancies with wildly different area figures depending on how generously (or not) they measured. A consistent methodology means:

• Tenants can compare rent per square metre across different buildings fairly
• Outgoings apportionment is calculated on a consistent basis across a building's tenancies
• Valuers and financiers can rely on a standard, comparable area figure
• Disputes over lettable area have a documented reference point to resolve against

Applying the Methodology in Practice

The methodology itself is a technical measurement standard, it specifies how to measure, not who is allowed to do the measuring. In practice, area figures are used for a range of purposes: leasing marketing, internal asset management, rent negotiation, and, for some formal purposes like lease registration, a certified report from a registered surveyor. Which pathway you need depends on what the figure is being used for.

How Arya Designs Can Help

We measure commercial property and calculate area figures according to the Property Council of Australia's Method of Measurement, whether that's a single office tenancy or a full mixed-use building. See our Commercial Building Measurement service, or the specific NLA and GLA services for office and retail/industrial property respectively.

Ready to Get Started?

Tell us what the area figure is needed for, leasing, a rent review, internal records, or something more formal, and we'll confirm the right approach and provide a fixed quote.