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Investments glossary

Floor Area Ratio – FAR Definition

The floor area ratio (FAR) is the relationship between the total amount of usable floor area that a building has, or has been permitted to have and the total area of the lot on which the building stands. The ratio is determined by dividing the total or gross floor area of the building by the gross area of the lot. A higher ratio is more likely to indicate a dense or urban construction. Local governments use FAR for zoning codes.

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