What is Floor Area Ratio (FAR)?

Definition

Floor area ratio (FAR) is the ratio of a building's total floor area to the total area of the land parcel on which it sits. A FAR of 2.0 means the building's total floor area is twice the land area — achievable through multi-story construction. FAR is primarily a zoning and development metric that determines maximum allowable building density, but it has indirect CAM implications. Properties with higher FARs typically have more complex common area configurations, higher load factors, and more tenants sharing operating expenses. Understanding a property's FAR helps property controllers contextualize the building's common area factor and anticipate the complexity of multi-tenant expense allocation.