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What Every Real Estate Investor Needs to Know About Cash Flow... And 36 Other Key Financial Measures, Updated Edition, 2nd Edition by Frank Gallinelli

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CHAPTER 43Calculation 37: Building Measurements—Gross Building Area, Usable Square Footage, Rentable Square Footage, Loss Ratio, Net Rentable Area

What It Means

You typically rent out commercial space by the square foot, and for this reason, the measurement of commercial space is important. One would think that a square foot is a square foot and that would be all there is to it. But no, there are different kinds of square-foot measurements in commercial leasing, and you should know what each means. Because these various measurements are closely interrelated, we’ll consider them together in this one chapter.

The first of these measurements, gross building area (GBA), is perhaps the most straightforward. GBA represents a building’s total floor ...

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