Floor Area Ratio (FAR)
A proportion within a building that is used by governments to set local zoning codes and regulations.
Floor Area Ratio (FAR) is a crucial metric in real estate and urban planning, regulating the density and intensity of land use. It represents the relationship between a building's total usable floor area and the size of the plot on which it stands. Understanding FAR helps property owners, developers, and investors make informed decisions about maximizing building potential within zoning guidelines.
What Does FAR Mean?
FAR directly influences the size and bulk of a building on a given property. Zoning regulations set a maximum FAR for specific areas. A higher FAR indicates denser development potential, often found in urban areas. Lower FARs are typical in suburban or less built-up zones.
How to Calculate FAR
Calculating FAR is straightforward:
Gross Floor Area (GFA): Determine the building's total usable floor space. This includes all levels, from basements to attics, but generally excludes open areas like parking structures or balconies.
Gross Lot Area: Measure the total size of the plot of land where the building is situated.
Divide and Obtain the FAR: Divide the Gross Floor Area (GFA) by the Gross Lot Area.
Formula:FAR = Gross Floor Area (GFA) / Gross Lot Area
Example:
A building has 10,000 square feet of gross floor area.
The lot size is 5,000 square feet.
FAR = 10,000 / 5,000 = 2.0
This means the building is twice the size of the lot it sits on.
Why FAR Matters
FAR is an important tool for:
Zoning: Cities and local governments use FAR to regulate development intensity and maintain the character of different neighborhoods.
Development Potential: Investors and developers assess the maximum allowable buildable area of a property using FAR.
Property Valuation: FAR can impact a property's value. Higher permissible FAR may mean greater potential income or redevelopment possibilities.
Floor Area Ratio (FAR) is a fundamental concept in real estate development and urban planning. Understanding FAR and how to calculate it is essential for anyone involved in property transactions, investment decisions, or working within the realm of zoning laws. Whether you're an individual property owner looking to maximize your space or a developer considering new projects, FAR is a valuable metric to guide informed and legally compliant decisions.