GSF: Gross Square Feet in Commercial Real Estate
Gross square feet, or GSF, is the entire square footage of a building. GSF typically includes areas such as the building core, maintenance and operations areas, stairwells, elevator shafts, equipment areas, attics, garages, balconies, excavated basement areas, mezzanines, corridors and walkways.
Better Financing Starts with More Options$1.2M offered by a Bank at 6.0%$2M offered by an Agency at 5.6%$1M offered by a Credit Union at 5.1%Click Here to Get QuotesWhat is Gross Square Feet in Commercial Real Estate?
Gross square feet, or GSF, is the entire square footage of a building. Unlike gross leasable area, or GLA, gross square feet refers to all areas, whether they are used by tenants or not. GSF typically includes areas such as the building core, maintenance and operations areas, stairwells, elevator shafts, equipment areas, attics, garages, balconies, excavated basement areas, mezzanines, corridors and walkways.
What Areas Aren't Included in Gross Square Feet?
Areas that are not included in gross square feet include parking lots, courts, playing fields, un-excavated basements, light wells, and elements of upper floors that are blocked by particularly tall lobbies, spaces, or other building structures.
How Gross Square Feet Affects Building Leases
Most commercial leasing tenants pay for the usable area they rent, plus a portion of the common areas. Some of these areas may be outside (and could include parking lots). As a result, they are included in the common area rental calculation, but usually aren’t included in a building's gross square feet. Conversely, operation and maintenance areas, while included in a building's gross square feet, are not usually included in its common areas for rental purposes (though this may depend on the specific situation.)
Large amounts of common areas are more common in large retail developments (i.e. malls) and larger office buildings. For example, a tenant rents 15% of the building's usable area, they are usually also responsible for paying rent for 15% of the common areas on a PSF (per square foot) basis. In the end, gross square feet can often be a confusing number, and may not always be the best way to calculate rental and sale costs for commercial real estate.
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Related Questions
What is GSF in commercial real estate?
Gross square feet, or GSF, is the entire square footage of a building. Unlike gross leasable area, or GLA, gross square feet refers to all areas, whether they are used by tenants or not. GSF typically includes areas such as the building core, maintenance and operations areas, stairwells, elevator shafts, equipment areas, attics, garages, balconies, excavated basement areas, mezzanines, corridors and walkways.
Areas that are not included in gross square feet include parking lots, courts, playing fields, un-excavated basements, light wells, and elements of upper floors that are blocked by particularly tall lobbies, spaces, or other building structures.
How is GSF calculated in commercial real estate?
Gross square feet, or GSF, is the total square footage of a building, including all areas such as the building core, maintenance and operations areas, stairwells, elevator shafts, equipment areas, attics, garages, balconies, excavated basement areas, mezzanines, corridors and walkways.
Large amounts of common areas are more common in large retail developments (i.e. malls) and larger office buildings. For example, a tenant rents 15% of the building's usable area, they are usually also responsible for paying rent for 15% of the common areas on a PSF (per square foot) basis.
In the end, gross square feet can often be a confusing number, and may not always be the best way to calculate rental and sale costs for commercial real estate.
What is the difference between GSF and RSF in commercial real estate?
Gross Square Feet (GSF) is the entire square footage of a building, including areas such as the building core, maintenance and operations areas, stairwells, elevator shafts, equipment areas, attics, garages, balconies, excavated basement areas, mezzanines, corridors and walkways. Usable Square Feet (USF) is the amount of space that is actually used by a tenant, while Rentable Square Feet (RSF) is the amount of space that is used by a tenant plus a portion of the common areas of the building. For example, a tenant may have 1,000 USF, but the RSF may be 1,200 due to the common areas that are included in the rentable square footage.
What are the benefits of using GSF in commercial real estate?
The main benefit of using GSF in commercial real estate is that it provides a comprehensive measure of the total square footage of a building. This includes all areas, whether they are used by tenants or not, such as the building core, maintenance and operations areas, stairwells, elevator shafts, equipment areas, attics, garages, balconies, excavated basement areas, mezzanines, corridors and walkways. This allows for a more accurate calculation of rental and sale costs for commercial real estate, as it takes into account all areas of the building.
In addition, GSF can be used to calculate the common area rental calculation, as it includes areas such as parking lots that are not usually included in a building's gross square feet. This can be especially useful for large retail developments and larger office buildings, as they often have large amounts of common areas.
What are the common mistakes to avoid when using GSF in commercial real estate?
Common mistakes to avoid when using GSF in commercial real estate include not including all areas of the building, such as the building core, maintenance and operations areas, stairwells, elevator shafts, equipment areas, attics, garages, balconies, excavated basement areas, mezzanines, corridors and walkways. Additionally, areas that are not included in gross square feet include parking lots, courts, playing fields, un-excavated basements, light wells, and elements of upper floors that are blocked by particularly tall lobbies, spaces, or other building structures.