What is Net Lettable Area (NLA)?

If you've ever looked at a commercial lease and seen "NLA" next to a square metre figure, this is what it actually means, and why it's not the same as the total floor space you can see when you walk into a tenancy.

The Definition

Net Lettable Area (NLA) is the usable floor space within a commercial tenancy, measured to the internal finished surfaces of the walls enclosing it. In Australia, it's calculated according to the Property Council of Australia's Method of Measurement, the industry-standard methodology almost every office lease references, directly or indirectly.

What's Included in NLA

• Internal office space, meeting rooms and private facilities enclosed by permanent walls
• Space measured from the finished internal surface of external and party walls

What's Excluded from NLA

This is where most confusion comes from. NLA does not include:

• Lift shafts and stairwells
• Shared toilets and tea rooms
• Public lobbies and common corridors
• Structural columns and piers
• Areas housing plant, equipment, and building services (air-conditioning, power)

So a tenancy's total floor space and its NLA can be meaningfully different numbers, especially in older buildings with more structural columns or a less efficient floor plate.

Why NLA Matters

Rent in most office leases is calculated per square metre of NLA. Outgoings (the tenant's share of the building's running costs) are also usually apportioned based on NLA relative to the total building area. Get the NLA figure wrong, and you get the rent and outgoings wrong too, which is exactly why an accurate measurement matters at lease-up, renewal, and rent review.

Who Actually Needs an NLA Measurement

• Landlords and leasing agents preparing a tenancy for market
• Tenants wanting to confirm they're being charged for the area they actually have
• Asset and property managers reviewing outgoings apportionment across a building
• Valuers needing an accurate area figure to support a valuation

How Arya Designs Can Help

We measure office tenancies on site and calculate NLA to the Property Council of Australia's Method of Measurement, delivered as a floor plan and area schedule ready for leasing or internal use. Learn more about our Net Lettable Area (NLA) Measurement service. The on-site visit itself, when you need the tenancy drawn before a fit-out or a lease plan, is site measurement and as-built drawings in Melbourne. For a larger example, see the measured survey of Don Bosco Hostel in Brunswick, with total and net area schedules for both levels.

Ready to Get Started?

Send us the address and scope of what needs measuring, and we'll come back with a fixed quote and timeframe.