Definition
Square footage is the measurement of area expressed in square feet. It is commonly used in real estate to describe the size of a property, either for sale or rent. This measurement is vital for determining the value, usability, and comparison of different properties. The way square footage is calculated can vary depending on the type of property and its intended use.
Examples
- Residential Property: For residential homes, square footage typically encompasses living spaces like bedrooms, kitchens, and bathrooms but may exclude garages, attics, and unfinished basements unless they are livable spaces.
- Office Buildings: In commercial real estate, particularly office buildings, the square footage might include private offices, conference rooms, and sometimes common areas such as corridors adjacent to elevators and stairwells.
- Retail Spaces: For retail properties, square footage often includes customer service areas but may exclude storage or utility rooms.
Frequently Asked Questions (FAQs)
1. How is square footage calculated?
Square footage is calculated by measuring the length and width of a space and multiplying those dimensions. For instance, a room that is 10 feet by 12 feet would have a square footage of 120 square feet.
2. Are there standard guidelines for measuring square footage across different property types?
Guidelines can vary by region and type of property. The Building Owners and Managers Association (BOMA) provides specific standards for commercial properties.
3. Does square footage include garages and basements?
In residential properties, garages and unfinished basements are typically not included in the square footage. However, if these spaces are finished and livable, they might be included.
4. Can square footage affect property value?
Yes, the square footage significantly impacts property value as larger spaces are often valued higher. It also influences usability and rent prices.
5. What is gross square footage vs. net square footage?
Gross square footage includes the total area within the building’s outer walls, while net square footage measures only the usable interior space.
Gross Floor Area (GFA): A broader measure than square footage, GFA may include all space within a building’s exterior walls, such as storage rooms, corridors, and structural components.
Usable Square Footage: This specifically refers to the area that can be deployed for functional use or occupied.
Rentable Square Footage: Often used in commercial leases, this term includes both usable area and a portion of common areas (e.g., lobbies, restrooms).
Online References
Suggested Books for Further Studies
- Real Estate Principles: A Value Approach by David C. Ling and Wayne R. Archer
- The Book on Rental Property Investing by Brandon Turner
- Modern Real Estate Practice by Fillmore W. Galaty, Wellington J. Allaway, and Robert C. Kyle
### What does square footage refer to in real estate?
- [x] The area measured in square feet.
- [ ] The volume of a space.
- [ ] The price of a property.
- [ ] The number of rooms in a property.
> **Explanation:** Square footage refers to the area measured in square feet, which is a crucial metric used to determine the size and value of real estate properties.
### Which elements might be included in the square footage calculation for office buildings?
- [x] Private offices and conference rooms.
- [ ] Only the external landscaping.
- [ ] Only the stairwells.
- [ ] Parking lots and outdoor areas.
> **Explanation:** In office buildings, square footage typically includes private offices and conference rooms, and sometimes common areas like corridors adjacent to elevators and stairwells.
### Are garages generally included in residential square footage?
- [ ] Yes, always.
- [ ] No, never.
- [x] Only if they are finished and livable.
- [ ] Only if they are detached.
> **Explanation:** Garages are generally not included in the residential square footage unless they are finished and count as livable spaces.
### How is square footage calculated?
- [ ] Volume of spaces measured cubically.
- [x] Length multiplied by width.
- [ ] By the cost of the property.
- [ ] By the number of rooms.
> **Explanation:** Square footage is calculated by measuring the length and width of a space and multiplying those dimensions together.
### Does square footage impact property value?
- [x] Yes, significantly.
- [ ] No, it has no effect.
- [ ] Only in urban areas.
- [ ] Only in residential properties.
> **Explanation:** Square footage significantly impacts the value of a property as larger spaces tend to be valued higher.
### What is included in gross square footage?
- [x] All space within the building’s exterior walls.
- [ ] Only finished living areas.
- [ ] Just the basement and attic.
- [ ] External land area and landscaping.
> **Explanation:** Gross square footage includes the total area within a building’s exterior walls, encompassing all spaces inside the building.
### What is the difference between gross and net square footage?
- [ ] Gross excludes interior walls; net includes them.
- [ ] Gross is always larger than net square footage.
- [x] Gross includes the entire building; net includes only usable interior spaces.
- [ ] Gross and net square footage are the same.
> **Explanation:** Gross square footage includes the entire area within a building's exterior walls, whereas net square footage measures only the usable interior space.
### For residential properties, does basement area typically count towards the square footage?
- [ ] Yes, all basement areas are included.
- [ ] No, any basement area is excluded.
- [x] Only if they are finished and livable.
- [ ] Only half of the basement area is included.
> **Explanation:** Basement areas typically count towards square footage only if they are finished and classified as livable space.
### What aspect of retail properties is usually included in square footage?
- [ ] Only backrooms.
- [ ] External signage.
- [x] Customer service areas.
- [ ] Public sidewalks.
> **Explanation:** In retail properties, square footage often includes customer service areas as these are key parts of the retail environment.
### Who provides standardized guidelines for measuring square footage in commercial properties?
- [ ] National Association of Realtors (NAR)
- [ ] Internal Revenue Service (IRS)
- [ ] Federal Housing Administration (FHA)
- [x] Building Owners and Managers Association (BOMA)
> **Explanation:** The Building Owners and Managers Association (BOMA) provides standardized guidelines for measuring square footage in commercial properties.
Thank you for delving into the important concept of square footage with us through this structured summary and engaging quiz. Continue building your real estate knowledge!
