Property Valuation
When appraising a Billings commercial property, 'gross leasable area' (GLA) refers to:
AThe total floor area of the building excluding all structural components
BThe total floor area available for tenant use, excluding common areas, in a retail or commercial center✓ Correct
CThe area of the building available for the landlord's use
DThe area outside the building available for parking
Explanation
Gross Leasable Area (GLA) is the total floor area available for tenant lease in a retail or commercial center, excluding common areas (corridors, restrooms, mechanical rooms). It is the standard measure for retail and commercial leasing.
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Key Terms to Know
Debt-to-Income Ratio (DTI)
A lender's measure of a borrower's monthly debt obligations relative to their gross monthly income, used to evaluate loan eligibility.
AppraisalA professional estimate of a property's market value prepared by a licensed or certified appraiser.
Capitalization Rate (Cap Rate)A rate used to estimate the value of income-producing property, calculated as Net Operating Income divided by property value.
Gross Rent Multiplier (GRM)A quick valuation metric for income properties calculated by dividing the property price by gross annual rental income.
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