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Floor area ratio (FAR) is the ratio of a building's total floor area (gross floor area) to the size of the piece of land upon which it is built. The terms can also refer to limits imposed on such a ratio through zoning.
As a formula FAR = (gross floor area) / (area of the plot)
Floor Area ratio is sometimes called floor space ratio (FSR).
A development permit allows a specific type of development on a specific parcel of land in the community to proceed with the zoning and development bylaws of the County. A development permit may stipulate some of the following conditions: the allowed use of the property, intensity of that use, building height, building site coverage, setbacks from property lines and other buildings and parking requirements.
allows construction of buildings or structure to proceed on condition of compliance with the City Building Code which addresses building and fire safety. A building permit is required for the construction, alteration, repair, relocation, demolition, or change of use of a building. Farm accessory buildings, and non-hazardous accessory buildings under 100 square feet (10m2), are exempt. Building permits can be obtained through an accredited Alberta permit licensing agent.
are open to all members of the public. If you believe that you are affected by a proposed land use application, you may make a presentation at, or submit written comments at or prior to, a scheduled Public Hearing. A five minute time limit is in effect for people who wish to speak at a Public Hearing.Type your paragraph here.
Gross Rent is the rent calculated inclusive of all building costs. Net Rent is the rent calculated excluding building costs. Face Rent is the quoted rental rate before taking into account incentives or increases.
Effective Rent is the rental rate averaged out over the term of the lease, including consideration of rent-free periods or up-front incentives.
Triple Net Lease("nnn" lease)
A triple net lease is a form of real-estate lease agreement where the tenant or lessee is responsible for the ongoing expenses of the property, including real estate taxes, building insurance, and maintenance, in addition to paying the rent and utilities.
Commercial Lease Incentives
Commercial lease incentives can come in many forms and they can depending on market conditions. The most common types of incentives are fixturing periods, rent-free periods, rent abatements and fit-out contributions.
A time period before a lease begins, when the tenant is allowed access to make improvements, deliver furniture, install phone systems, and other such matters.
A rent-free period is a time during your lease where you don’t have to pay any rent at all. It usually takes effect at the beginning of a lease (though occasionally it can kick in further down the track) and is indicated as ‘’X months rent-free’’.
A rent-free period may be appropriate for tenants who will take time to generate cash flow.
A rent abatement is essentially a reduction in rent spread over the commercial lease term of a commercial property. It is usually represented as a dollar or percentage discount.
A fit-out contribution is a lease incentive that applies to a tenant’s fit-out – the process of installing fittings and fixtures, appliances and decorative touches to an interior office space.
For example, a tenant may negotiate to be reimbursed for $300,000 of their office fit-out costs instead of opting for a rent-free or a rent-abatement period.
is a real estate valuation measure used to compare different real estate investments. Although there are many variations, a cap rate is often calculated as the ratio between the net operating income produced by an asset and the original capital cost (the price paid to buy the asset) or alternatively its current market value.
The rate is calculated as follows:
Capitalization Rate = Net Operating Income / Current Market Value or Cost(purchase price)
Hotel Key Performance Indicators(KPI)
Average Room Rate(ARR)
measures the average rate per available room
The Formula is: ARR = Total Room Revenue / Total Rooms Occupied
Average Daily Rate(ADR) calculates the average price or rate for each hotel room sold for a specific day. The Formula is: ADR = Room Revenue / Rooms Sold
*ARR can be used to measure the average rate for a longer period of time (weekly, monthly) while ADR may only be used to measure the average rate of one day.
Bedroom Occupancy Rate(OCC)
shows the percentage of available rooms or beds being sold for a certain period of time. The Formula is: Occupancy = Rooms Sold / Room Available
Revenue per Available Room(RevPAR)
is regarded as one of the most important financial calculation for any hotel to see how much revenue they have made within a certain period of time. The Formula is: RevPAR = Rooms Revenue / Rooms Available
Cost per Occupied Room (CPOR) calculates the average cost per occupied room in the hotel. It helps to measure and analyze if the operating cost for each room is reasonable. The Formula is:
Cost per Occupied Room= Total Rooms Departments Cost / Number of Rooms Sold