Floor Area Ratio

FAR: Floor Area Ratio in Commercial Real Estate

FAR: Floor Area Ratio in Commercial Real Estate

Floor area ratio, or FAR, is the ratio between a building's floor area and the size of the land on which the property is located. The larger a property's FAR ratio, the higher density the project has. FAR is often limited by zoning laws, so it's important for investors and developers looking to build a new project to check out local FAR limits early on in the planning process.