Common Management Admission Test (CMAT) Practice Exam 2025 – All-in-One Guide to Achieve Exam Success!

Net square footage measures the area that can be utilized for specific functions, often related to sales or productive activities. Essentially, it includes only the space that generates income or is actively employed in business operations. Therefore, it does not account for areas that are not actively used in generating revenue, such as aisles and cross aisles.

In commercial spaces, aisles are integral for customer movement and access to goods; however, they are not considered productive space in terms of sale transactions. Consequently, these spaces are excluded when calculating net square footage since they do not add to the financial output of the area being measured.

Understanding this distinction is crucial when evaluating real estate, particularly in commercial contexts where maximizing usable space is vital for profitability.