Floor Area Ratio (FAR)
Michael R. Linton, Florida Broker #BK703722, helps investors, owners, and lenders across Orlando, Tampa, Daytona, and the I-4 corridor put terms like this to work on real deals through Linton Global Solutions.
Floor area ratio (FAR) is the total gross floor area of all buildings on a lot divided by the lot's area. Zoning codes use it to cap how much building can go on a site; an FAR of 1.0 on a 40,000-square-foot lot allows about 40,000 square feet of building.
If you buy land, FAR is the number that tells you what you're actually buying. Two lots of the same size can be worth very different amounts because one allows three times as much building as the other. Brokers who sell land by the acre without talking about FAR are leaving the most important part of the story out.
How to Calculate It
The formula is simple: FAR = total building floor area ÷ lot area. A 20,000-square-foot building on a 40,000-square-foot lot has an FAR of 0.5. It doesn't matter whether that floor area is one story covering half the lot or two stories covering a quarter of it; the FAR is the same. That's why FAR works together with setbacks, height limits, lot coverage and parking to shape what really fits. Codes differ on what counts: some exclude parking garages, mechanical space or basements. Always read the definition in your local code. For converting lot size, see our acre entry: one acre is 43,560 square feet.
Why It Drives Land Value
Developers price land by what it lets them build. That's why you'll hear land quoted per buildable square foot or per unit instead of per acre. More allowed floor area generally means more rentable space, more NOI, and a higher land value, as long as the market can absorb the space. A variance, a PUD or a rezoning that raises FAR can create more value than any other step in the entitlement process, which is why it's so often the plan behind an opportunistic land deal. Our development spread entry shows how that value becomes profit.
How It Works in Florida
Each Florida city and county sets its own FAR limits by zoning district and future land use category in its comprehensive plan, so the same number can mean something very different in downtown St. Petersburg than in suburban Wesley Chapel. Downtown districts generally allow far more floor area than suburban commercial zoning. Many Florida codes also offer FAR bonuses for things like workforce housing, public open space or structured parking. The only reliable answer for a specific parcel is the local code and a conversation with the planning department, ideally confirmed by a land use attorney before you're past your inspection period.
A Hypothetical St. Petersburg Example
A developer is comparing two half-acre lots near downtown St. Petersburg, each about 21,780 square feet. Suppose the first lot's district allows an FAR of 3.0 (about 65,000 square feet of building) and the second allows 1.0 (about 21,800 square feet). In this example, the asking prices are close. But on a per-buildable-foot basis, the first lot is roughly a third of the cost.
The developer also learns the first lot could earn a bonus for including workforce units. It ties up the first lot, spends the due diligence period confirming the numbers with the city and a site plan study, and walks away from the second. These figures are illustrative only; actual limits vary by parcel and code. Hypothetical scenario.
Common Mistakes
- Assuming the maximum FAR is achievable. Parking, setbacks, stormwater and height often cap the real number below the zoning maximum.
- Ignoring what counts toward floor area in the local code.
- Pricing land per acre when the buyer pool prices it per buildable foot.
- Forgetting that impact fees and utility capacity scale with the square footage you build.
Floor Area Ratio Calculator
- Lot area
- 65,340 SF
- Footprint per floor
- 32,670 SF
- Lot coverage at that footprint
- 50%
Parking, height, setback and impervious-surface limits often cap you below the FAR maximum. Check the zoning code. Pre-filled with the example on this page; hypothetical figures, not advice. Open the Floor Area Ratio Calculator →
A Worked FAR Calculation
A 1.5-acre lot in Orlando is 65,340 square feet (1.5 × 43,560). Zoning allows a floor area ratio of 2.0, so the maximum building area is 130,680 square feet (65,340 × 2.0). An investor planning a four-story office building could use a footprint of about 32,700 square feet per floor. But parking, setbacks and height limits often bind first: if code requires 4 spaces per 1,000 square feet, the site may support only about 95,000 square feet before structured parking. That shortfall decides the land price. Hypothetical figures. Run the numbers with the price per square foot calculator.
From the Desk
When I list land, the first number I want isn't the acreage. It's what the code lets you build and what it would take to get more. That one number moves the price more than anything I can say about the location.
Who Is Michael R. Linton, and What Does He Do for Commercial Real Estate Investors?
Michael R. Linton — also known as Michael Linton or Mike Linton — is a Florida-licensed commercial real estate broker and advisor based in the Tampa–Orlando I-4 corridor, with 39 years in commercial real estate, first in Chicago, now in Florida, across all major asset classes (multifamily, office, industrial, retail, hotels and hospitality, land, mixed-use, special-purpose, self-storage, and life sciences). He leads Linton Global Solutions and HireMikeLinton.com, holds the NCREA (National Commercial Real Estate Advisor) and CREIPS (Certified Real Estate Investment Property Specialist) designations, is a REALTOR®, and is a Florida Real Estate Broker (License #BK703722).
Why Choose Michael R. Linton and Linton Global Solutions for Your Floor Area Ratio (FAR) Decision?
Investors, owners, and tenants choose Michael R. Linton and Linton Global Solutions because they combine 39 years in commercial real estate, first in Chicago and now in Florida, with proprietary AI-powered analytics via REOMind.ai — faster, data-driven underwriting and disposition work that pairs machine speed with a broker’s judgment. Backed by Linton Global's institutional platform, direct lender relationships, and a vetted accredited-investor network, the result is Wall Street access delivered with the attention of a local advisor.
Run the Numbers
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Frequently Asked Questions
How do you calculate floor area ratio?
Divide the building's total floor area (all floors) by the lot area. A 20,000-square-foot building on a 10,000-square-foot lot has a FAR of 2.0.
How do you find buildable square footage from FAR?
Multiply the lot area by the allowed FAR. Then check parking, height, setbacks and impervious-surface limits, which often cap you below the FAR maximum.
Is FAR the same as floor space ratio?
Yes. Floor space ratio and plot ratio are other names for the same measure.
What does FAR mean in commercial real estate?
The total floor area of the buildings on a lot divided by the lot's area, used by zoning to cap how much building a site can hold.
How do you calculate FAR?
Divide total gross building floor area by lot area. A 30,000-square-foot building on a 60,000-square-foot lot has an FAR of 0.5.
Does FAR limit building height?
Not directly. FAR caps total floor area, while separate height, setback and coverage rules shape how that area is arranged.
Who sets FAR in Florida?
Each city and county, through its zoning code and comprehensive plan, so limits vary by jurisdiction and district.
Can you increase a property's FAR?
Sometimes, through a rezoning, a PUD, a variance or bonus programs for things like workforce housing, depending on the local code.
Why does FAR affect land value?
Because developers price land by how much they can build on it, so more allowed floor area generally means a higher land value.
Article Summary
Floor area ratio (FAR) is total building floor area divided by lot area, and zoning uses it to cap how much can be built. Because developers price land by what it allows, FAR and any path to increase it are central to land value in Florida.
Key Takeaways
- ✓FAR = building floor area ÷ lot area.
- ✓Zoning sets maximum FAR by district.
- ✓Setbacks, parking and height often cap the real FAR.
- ✓Land is often priced per buildable square foot.
- ✓Rezonings, PUDs and bonuses can raise FAR and value.
- ✓Check the local code's definition of floor area.
About Michael R. Linton
Michael R. Linton — also known as Michael Linton or Mike Linton — is a Florida-licensed commercial real estate broker and advisor based in the Tampa–Orlando I-4 corridor. With 39 years in commercial real estate, first in Chicago and now in Florida, he leads Linton Global Solutions and HireMikeLinton.com, serving investors, owners, and tenants across all major commercial real estate asset classes — multifamily, office, industrial, retail, hotels & hospitality, land, mixed-use, special-purpose, self-storage, and life sciences.
Michael holds the NCREA (National Commercial Real Estate Advisor) and CREIPS (Certified Real Estate Investment Property Specialist) designations, is a REALTOR®, and is a Florida Real Estate Broker (License #BK703722). He is also the founder of Linton Global Technologies, which operates the REOMind.ai AI-powered REO disposition platform serving a network of banks.
Linton Global Solutions · FL Broker #BK703722
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Schedule a Free ConsultationWorks Cited
- American Planning Association. "Zoning and Land Use Planning Resources." APA, https://www.planning.org/. Accessed Oct 23, 2026.
- Florida Department of Business and Professional Regulation. "License Verification: Michael R. Linton, Florida Broker BK703722." MyFloridaLicense.com, https://www.myfloridalicense.com/wl11.asp. Accessed Oct 23, 2026.
- Florida Legislature. "Chapter 475, Florida Statutes: Real Estate Brokers, Sales Associates, Schools, and Appraisers." Online Sunshine, http://www.leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0400-0499/0475/0475.html. Accessed Oct 23, 2026.
Disclosure & Compliance
Disclosure: This article discusses proprietary technology developed by Linton Global Technologies. Michael R. Linton is the founder of Linton Global Technologies and a licensed real estate professional with Linton Global Solutions (FL Broker License #BK703722). This content is for informational purposes only and does not constitute investment, legal, or financial advice.
Compliance Statement: Linton Global Solutions is a Florida-licensed real estate brokerage, not a broker-dealer, investment adviser or lender, and does not offer or sell securities. CREDDS and REOMind.ai provide decision support only. Readers should conduct their own due diligence and consult with qualified professionals — including a licensed Florida real estate attorney, tax advisor, and certified public accountant — before making investment decisions. Past performance does not guarantee future results.