1. Welcome to AppraisersForum.com, the premiere online  community for the discussion of real estate appraisal. Register a free account to be able to post and unlock additional forums and features.

Gba Vs. GLA

Discussion in 'General Appraisal Discussion' started by Roger Pellegrini, Nov 26, 2003.

Thread Status:
Not open for further replies.
  1. Roger Pellegrini

    Roger Pellegrini New Member

    0
    May 2, 2003
    Dearborne's 8th Edition text - Fundamentals of Real Estate Appraisal, says the following about GLA & GBA:

    "Gross living area. For a single-family detached residence, size is described in terms of gross living area (GLA), defined as the total amount of finished habitable above-grade space, measured along the building's outside perimeter. Generally, attics, basements, and crawl spaces are not included in the measurement."

    "Gross building area. For multifamily residences and industrial buildings, size is described in terms of gross building area (GLA), defined as all enclosed floor areas (including both attics and basements), measured along the building's outside perimeter."

    My questions are ...

    1. Does the GBA definition apply to 2-4 family rental properties?

    2. When researching comparable properties (2-4 family and 5+ family) at the assessor's office, is it unreasonable to expect that the assessor has switched from the GLA to GBA definition in making square footage caculations?
     
  2. Mike Garrett RAA

    Mike Garrett RAA Elite Member

    48
    Jan 14, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    Colorado
    No, not normally. In some instances a fourplex (4 family) might have and entryway and hallways. If that is the situation, you can build a case for using a GBA on the small income report. Most often; however, you will use the GLA.
     
  3. Jungle Boy

    Jungle Boy Senior Member

    0
    Oct 30, 2002
    Professional Status:
    Real Estate Agent or Broker
    State:
    Florida
    Mike
    How about shared laundry areas, etc. ?
     
  4. Mike Garrett RAA

    Mike Garrett RAA Elite Member

    48
    Jan 14, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    Colorado
  5. Oregon Doug

    Oregon Doug Senior Member

    0
    Jan 15, 2002
    Professional Status:
    General Public
    State:
    Oregon
    Roger - It has been my experience that the assessor's office uses the GBA for everything out here and includes any stair area on both levels of 2 story homes. The Realtors pick up those areas from the county records and go with 'em - right or wrong. The result is that what may be a 2,000 sf, 2 story home may be listed & sold as a 2,200 sf home because the stairs are counted twice - but, the comps are listed & sold the same way. So what. (It may be an issue in the Cost Approach.)

    Commercial property is another story (I like the BOMA standards). In these cases, you have to pay attention to leases that refer to Net Usable Area, Net Rentable Area, Net or Gross Building Area in order to develop the NOI used in the Income Approach and Cap Rate extraction from market sales. It is not uncommon to use different areas in different approaches - net rentable in the income approach but gross building area in the cost approach. Both areas can be correct depending the building layout. (elevator shafts, multi tenants on a single floor plate, common hallways, whole floor tenants....)

    Oregon Doug
     
Thread Status:
Not open for further replies.

Share This Page