What Areas Are Included in Net Lettable Area (NLA)?
Net Lettable Area (NLA) is the measurement used in commercial property to determine the portion of a building that can be leased to tenants.
It forms the basis for calculating rent, outgoings and building performance, so it is important that the measurement follows recognised industry guidelines.
However, many people assume that the total area inside a tenancy automatically equals the Net Lettable Area. In practice, this is often not the case, as certain parts of a building are excluded from NLA calculations.
Understanding what is included and excluded can help property owners, agents and tenants better interpret building areas.
What Is Net Lettable Area?
Net Lettable Area (NLA) refers to the usable area within a commercial tenancy that can be leased to an occupier.
It generally includes the internal space that a tenant occupies and uses as part of their premises.
NLA is commonly used for:
calculating rent
preparing lease documentation
comparing buildings and tenancy sizes
property valuations
asset management reporting
Because rental income is typically calculated based on the NLA, it is important that measurements are consistent across a building.
How NLA Is Typically Measured
While measurement standards can vary slightly depending on the building type, NLA is generally calculated using the following principles:
internal walls between tenancies are measured to the centreline of the wall
external walls are measured to the internal face of the wall
shared walls between tenancies are typically allocated 50% to each tenancy
These rules ensure that each tenancy is measured consistently across the building.
Because of this methodology, the final NLA figure may differ from a simple internal floor area measurement.
Areas Usually Included in NLA
The following areas are typically included within a tenancy’s Net Lettable Area:
offices and work areas
meeting rooms and boardrooms
internal circulation within the tenancy
storage areas located within the tenancy
kitchens or internal staff areas
These spaces form part of the tenant’s usable working environment.
Areas Usually Excluded From NLA
Certain parts of a building are not considered lettable space and are therefore excluded from NLA calculations.
Common exclusions include:
stairwells
lift shafts and lift motor rooms
plant rooms and building services areas
common corridors and shared circulation spaces
public amenities located outside the tenancy
These areas are generally classified as common building infrastructure rather than tenant space.
Why NLA Can Differ From a Floor Plan Area
Many people compare the size shown on a marketing floor plan with the Net Lettable Area and assume they should be identical.
However, because NLA excludes certain building elements and follows specific measurement rules, the figures can sometimes differ.
Marketing floor plans are designed to help prospective tenants or buyers understand the layout of a space, while NLA measurements are used to determine how the area is calculated for leasing purposes.
For this reason, the two measurements serve different roles in a commercial property transaction.
You can read more about this in our guide:
Commercial Floor Plans vs NLA Measurements – What Real Estate Agents Actually Need.
Using Floor Plans for Commercial Property Marketing
For most leasing campaigns, agents require a clear floor plan that shows the layout of the space so prospective tenants can understand how it might suit their business.
Marketing floor plans are commonly used in:
online listings
leasing brochures
Information Memorandums
marketing campaigns
They provide a visual representation of the property, helping prospective tenants quickly interpret the configuration of the space before arranging an inspection.
About R24 Commercial Floor Plans
R24 provides commercial floor plans for office, warehouse and retail properties across Perth and Western Australia.
Our plans are designed specifically for property marketing, helping agents clearly present the layout of a space in online listings, Information Memorandums and leasing campaigns.
Because our team works across both residential and commercial properties, we are able to respond quickly to time-sensitive marketing campaigns.
Frequently Asked Questions
Does NLA include toilets?
Toilets located within common areas of a building are typically excluded from Net Lettable Area calculations.
However, amenities located inside a tenancy may sometimes be included depending on the building layout and measurement methodology.
Does NLA include stairs?
Stairwells are generally excluded from NLA because they form part of the building’s shared circulation and fire egress infrastructure.
Is NLA the same as floor area?
No. Net Lettable Area follows specific measurement rules and excludes certain parts of a building. As a result, the NLA can differ from the total internal floor area shown on a floor plan.
Related Resources
You may also find these guides helpful:
Commercial Floor Plans vs NLA Measurements
Commercial Floor Plans in Perth – Pricing Guide
What Real Estate Agents Look for in a Floor Plan Provider