What does NFA mean in REAL ESTATE

The elements that are included in calculating NFA include external walls, internal walls, stairwells, balconies and any other areas enclosed within the structure itself. It does not include any units built outside of the main structure or any connections with outside buildings.

Factors that can affect NFA calculations include the size of rooms, number of windows and doors, room configurations, and wall or ceiling openings. Some other factors such as joists and beams may also be taken into account in some cases.

One primary use for calculating NFA is for commercial real estate appraisals. The size of a building affects its value so it's important to have an accurate measurement of both its exterior and interior dimensions for comparison with similar properties on the market when making appraisals. Additionally, insurance companies often consider NFA when determining premiums for buildings due to its effect on possible damages from fires or floods.

Depending on local regulations or industry standards some exceptions may be applied when measuring certain types of structures such as churches or factories which might require additional measurements based on their unique circumstances.

Gross Floor Area (GFA) refers to the total area inside a building whereas Net Floor Area only accounts for areas accessible by occupants and leaves out specific features like balconies or stairwells which do not count towards total living space but are still considered part of the overall physical structure.