Floor area ratio (FAR) is an important consideration for property developers in planning projects, as it impacts development costs, leasable space, and potential revenue. FAR refers to the total floor area of a building relative to the size of the land upon which it is built. Higher FAR means more leasable or saleable space, which generates more income from tenants or buyers. However, FAR calculations must not compromise common areas like circulation spaces. As architects, understanding FAR and its implications for developers, tenants, and buyers is crucial for designing efficient, integrated projects that meet planning requirements and financial objectives.
Floor area ratio (FAR) is an important consideration for property developers in planning projects, as it impacts development costs, leasable space, and potential revenue. FAR refers to the total floor area of a building relative to the size of the land upon which it is built. Higher FAR means more leasable or saleable space, which generates more income from tenants or buyers. However, FAR calculations must not compromise common areas like circulation spaces. As architects, understanding FAR and its implications for developers, tenants, and buyers is crucial for designing efficient, integrated projects that meet planning requirements and financial objectives.
Floor area ratio (FAR) is an important consideration for property developers in planning projects, as it impacts development costs, leasable space, and potential revenue. FAR refers to the total floor area of a building relative to the size of the land upon which it is built. Higher FAR means more leasable or saleable space, which generates more income from tenants or buyers. However, FAR calculations must not compromise common areas like circulation spaces. As architects, understanding FAR and its implications for developers, tenants, and buyers is crucial for designing efficient, integrated projects that meet planning requirements and financial objectives.
This lesson is a continuation of the topic Development Control Regulations focusing on
Floor Area Ration of a particular project. SM and Ayalas are two biggest property developers in the Philippines but still many people venture that depends on development loans that is why financial study is an important aspect in developing particularly on floor area ratio. The floor area ratio promises to be most useful in central business districts and in other zones of high land use intensity where office buildings, stores, hotels, and tall apartment houses are often intermixed. When talking about commercial or residential real estate, everything is calculated based on floor space. For example, development costs, how much area can you lease, and even the potential annual revenue are all important considerations One thing I have realized is how important proper Floor Area Ratio is to any developments and Higher efficiency or more leasable spaces/saleable space are better for it gives profit or income because tenants or buyers pay for the gross area that they will use. Especially the spaces called “prime spaces”, for it is saleable or leasable in a more expensive fee. Ground floor are prime spaces for it is more accessible and higher floor levels are also considered prime spaces for the view that it gives to the occupants. but as one of the most important considerations in developments is that it should not compromise the common/circulation spaces. Mapping out a clear circulation spaces can help communicate different zone locations, where to access the various floors and the location facilities like toilets, offices and etc. As an architect we all know there are many considerations when it comes to designing an efficient project especially if it is a high-rise development for the reason large number occupants experience the same effects development design in their everyday life and not only that but the outcome that can affect the developers are an important consideration. Whether you’re a developer, investor, tenant, or buyer, it’s crucial you understand commercial lease floor areas and how they relate to your financial goals. In the end it is very important to understand extensive knowledge of the complex planning required to produce integrated and sustainable projects with the ability to provide seamless connections between the various functions while still achieving the future financial goal of the developer.