Floor Area Ratio

Like Building-to-land ratios, Floor Area Ratios (FAR) communicate information about the improvements located on a site.  Floor Area Ratios, however, indicate the ratio of total build-out to site size.  Thus a 2-story building with 5,000 square feet of office space on each floor on a 10,000 square foot lot would have a floor area ratio of 1.0.  If it had 3 floors of equal size the ratio would increase to; 15,000 Sq. Ft. (build-out) / 10,000 (site area) = 1.50.  Thus, buildings with large floor area ratios are typically vertical buildings with many stories.

Floor Area Ratios provide information to appraisers regarding site build-out that is useful, and different from the information provided by building-to-land ratios.

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.