What is Net Lettable Area in Real Estate?

Net Lettable Area (NLA) in real estate refers to the total floor area of a building that can be leased to tenants, excluding common areas such as lobbies, stairwells, elevators, restrooms, and maintenance spaces.

Key Points:

• Includes only tenant-usable areas
• Excludes shared/common spaces
• Used to calculate rentable income and leasing metrics
• Common in commercial and office properties

Example:

In an office building, NLA would include each tenant’s private suite but not the building's corridors, bathrooms, or lobby.