Property ValuationIntermediateArizona Exam

The 'gross building area' (GBA) of an Arizona commercial property differs from 'net rentable area' (NRA) in that:

AGBA and NRA are identical for single-tenant net-leased properties; the distinction applies only in multi-tenant buildings with allocated common area charges
BGBA is the total floor area measured from exterior walls; NRA excludes common areas, mechanical spaces, and non-rentable portionsCorrect
CNRA is calculated from the center of demising walls rather than exterior walls, creating a systematic difference in all multi-tenant commercial buildings
DGBA includes all leasable and non-leasable areas above grade, while NRA includes basement and parking structures allocated to individual tenants

Why GBA is the total floor area measured from exterior walls; NRA excludes common areas, mechanical spaces, and non-rentable portions Is Correct

Answer B: GBA is the total floor area measured from exterior walls; NRA excludes common areas, mechanical spaces, and non-rentable portions

GBA (or Gross Floor Area/GFA) measures total building area from exterior walls. NRA (or Net Rentable Area) is the portion tenants actually lease—excluding lobbies, mechanical rooms, stairwells, and other common areas.

Exam Tip: Property Valuation

Valuation questions focus on the three approaches to value: sales comparison, cost, and income. Know which approach is best for which property type. The income approach uses cap rate and NOI — memorize these formulas.

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