Building-to-Land Ratio

Building-to-land ratios are calculated by taking the 1st floor (building footprint) in square feet and dividing it by the total site area in square feet.  The ratios provide appraisers with some indication of how a property type utilizes its site area.  Industrial buildings in metropolitan Las Vegas generally have building-to-land ratios in the 0.30 to 0.50 range.  Thus, properties that fall well outside of that "typical" range either have a great deal more land or a great deal less land than is typical in the market.  Thus, they can be used to help an appraiser identify when a property has excess land or surplus land.

The Floor Area Ratio (FAR) is another useful ratio that is used by appraisers to communicate the build-out located on a particular site.  Floor Area Ratios can exceed 1:1 or 1 since vertical buildings can have a finished area, when all floors areas are summed, that is larger than the site.

Contact us with your questions about building-to-land ratios or other appraisal issues at 1-702-568-6699 or send us an e-mail at grigdon@cox.net.     

Commercial Real Estate Appraisals in the Las Vegas & Henderson, Nevada Area.