The sum of all floor areas of a building, typically measured from the exterior walls.
A property's total income before expenses are deducted.
Gross Income Multiplier (GIM)
Calculation used to determine how fast a property would pay for itself in gross annual income.
Example: ABC Company is looking to purchase two properties. Property A is listed at $500,000 with an annual gross income of $50,000, while property B is listed at $600,000 with an annual income of $75,000. Property B has a faster return with 8, while property A has a longer return of 10. The calculation is sales price divided by gross annual income. (Gross Rent Multiplier (GRM) is sales price divided by gross monthly income.)
Gross Leasable Area (GLA)
The total floor area designed for Tenant occupancy and exclusive use.
A lease type whereby the Landlord is responsible for the payments of all recoverable expenses of the building. Such recoverable expenses are typically included in the calculation of base rent. In some gross leases, the Tenant never pays a pro-rata share of recoverable expenses. In others, the Tenant pays its pro-rata share of recoverable expenses over an expense stop.
Example: ABC Company signs a five-year lease which requires it to pay base rent of $21.00/ square foot plus its proportionate share of recoverable expenses in excess of $9.00/ square foot. This is an example of a gross lease because the landlord's responsible for the payment of the first $9.00/ square foot of recoverable expenses, and ABC is required to pay for recoverable expenses in excess of $9.00/ square foot.