When measuring a building, how do gross living area (GLA) and net usable area differ?

Gross Living Area (GLA) is defined as the total area of all finished spaces within a building that are suitable for living purposes, which typically includes all rooms such as bedrooms, living rooms, dining rooms, and kitchens. It provides a way to assess the overall size of a property. In contrast, net usable area refers to the total area of a building that can be utilized or occupied, specifically excluding common areas that do not directly serve the individual unit, such as hallways, lobbies, or mechanical rooms.

This distinction makes the correct choice clearly aligned with how these measurements are used in the appraisal process. By including all finished spaces while excluding common areas, GLA offers a broader perspective of the building's size, while the net usable area gives a more focused view of the spaces that are actually usable by the occupants. This difference is crucial for appraisers and potential buyers to understand the usable space versus the total space within a property.