Commercial Real Estate Issue
\[ONTARIO\]  Recently entered into a commercial lease.  Office space is on the second level of a retail mail.  The usable square footage of the office space is approx 450 sq. ft. and the gross-up is 15% which equals the rentable square footage  (approx 500 sq. ft.).  The landlord stated that the rentable square footage is equal to the GLA.  Currently paying minimum rent + additional rent based on the GLA.

1. Should the GLA be calculated on just the usable square footage?
2. The GLA definition on the lease does not mention a gross-up.  Is this an issue?
3. There is a definition for proportionate share and 2nd storey operating costs.  Both these definitions use GLA in their calculations but do not mention details on how to calculate the GLA correctly.
[{"id": "fozb79u", "text": "What is the GLA definition in the lease?", "replies": [{"id": "fozddjz", "text": "GLA = means all floor areas measured from:\n\na) the exterior face of exterior walls, doors and windows;\n\nb) the exterior face of interior walls, doors and windows separating rentaable premises from common facilities;\n\nc)  the exterior face of the interior walls that are not common walls walls separating rentable premises from adjoining rentable premises;\n\nd)  the centre line of interior common walls separating rentable premises from adjoining rentable premises.\n\nGLA includes interior spaces even if it is occupied by projections, structures or non-structural, and if a store front is recessed from the lease line the area of the recess is included within the GLA of the rentable premises.  The dimensions of the rentable premises that are a kiosk will be determined by the landlord.", "replies": [{"id": "fozofzx", "text": "Answer to (1) is \"no\" based on that definition. Not unusual for square footage to be measured from the outside (as opposed to usable).\n\nFor (2), ok so its not in the lease - does it matter? if you had a perfect square with thin walls 15% might be too high, if it is a complex shape it might be too low. You could measure the GLA yourself, based on the definition. Likely you will come close enough (or even ahead) compared to the 15% gross up.\n\n(3) doesn't matter so long as GLA was defined elsewhere.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "fozxe7q", "text": "You need to have someone read your complete lease.  Everything you said has 'normal' definitions and common ways of doing this but your lease agreement defines all this.  Posting one snippet of GLA is going to get you bad answers.", "replies": [], "depth": 1}]