Workplace glossary

What is Net Lettable Area?

Definition & practical guide1 min read

Net lettable area (net internal area in the UK, rentable square feet in the US) is the floor space a tenant actually pays for, measured to defined standards and excluding structural elements. Different markets measure differently, which distorts naive cross-market cost comparisons.

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It is the denominator in cost per square metre and the basis of most lease negotiations.

Common questions

What does Net Lettable Area mean in simple terms?

Net lettable area (net internal area in the UK, rentable square feet in the US) is the floor space a tenant actually pays for, measured to defined standards and excluding structural elements. Different markets measure differently, which distorts naive cross-market cost comparisons.

How do you calculate Net Lettable Area?

It is the denominator in cost per square metre and the basis of most lease negotiations.