What's the difference between a floor area and a lot area?

The difference between floor area and lot area is primarily related to the scope and application of each term in real estate and urban planning:

Lot Area

• Definition: The lot area refers to the total area of a plot of land, usually measured in square feet or square meters. It encompasses the entire property, including any structures and open spaces.
• Use: Lot area is crucial for determining property taxes, zoning regulations, and the overall size of the land available for development.

Floor Area

• Definition: Floor area, on the other hand, refers to the total area of the buildings or structures constructed on the lot. This includes all floors of a building, not just the ground floor.
• Use: Floor area is important for calculating the Floor Area Ratio (FAR), which is a zoning regulation that determines how much of a lot can be covered by buildings. It affects property values, development potential, and urban density.

In summary, the lot area is about the land itself, while the floor area is about the buildings on that land. The Floor Area Ratio (FAR) is a key metric that relates these two by measuring the proportion of a lot that can be developed with buildings123.