- David Hofman
- n/a
- September 9, 2024
I have a retail building with 14 tenants that has no public areas ( except for covered circulation front walkway ), all the service areas are located within and on a per tenant basis. Having said that, the anchor tenant space has been split into three tenants and they share a service corridor out the back. Question #1, is this service corridor shared by 3 of the 14 tenant considered "service and public area" and not counted in "Gross Leasable Area"? Or can it be allocated proportionally to these three tenants. Question #2, I am looking for the text in the standard that excludes "Service & Public Areas" from the "Gross Leasable Area". I see in 3.1 Global Summary of Areas Spreadsheet how the "Service & Public Areas" are deducted from the "Gross Leasable Area", but is there any other explanation?
- David Fingret
- Extreme Measures Inc.
- September 11, 2024
Hi David
The shared service corridor would be Service and Public Area and thus not included in the Gross Leasable Area (GLA).
The standard states for Occupant Area (a component of Gross Leasable Area):
Occupant Area includes all of the Enclosed Areas and Unenclosed Areas that an Occupant has Exclusive Use of (page 22).
The standard states for Service and Public Areas:
Service and Public Areas include any portions within the Boundary Area that provide the necessary Services and Amenities required for the normal operation and enjoyment of a Retail Property (page 21).
These are completely separate space classifications in the standard, one of which is specifically included in the GLA (Occupant Area) under the "Gross Leasable Area" category and the other that specifically isn't (Service and Public Areas) under the "Gross Leasable Exclusions Category". It is also supported in the Global Summary of Areas spreadsheet calculations.
Typically, the cost of the shared areas would be included in the CAM charges. The BOMA Retail 2020 standard provides a methodology for calculating the proportionate share of common areas according to Occupant GLA's but it doesn't apply the result to the GLA - it is designed to help the Landlord determine the appropriate CAM rates.
Thanks,
David