California Real Estate Practice Exam

The appraiser's primary measure of the efficiency of an office building plan is:

1. corridor widths

2. elevator capacity

3. parking

4. ratio of net rentable area to gross area

The correct answer is: corridor widths

The primary measure of the efficiency of an office building plan is the ratio of net rentable area to gross area. This ratio helps determine how effectively the space is being utilized. The net rentable area refers to the space that can be rented out to tenants, while gross area includes all areas within the building, such as common areas, hallways, restrooms, and so on. A higher ratio indicates that a larger proportion of the building's space is accruing income, which signifies effective use of space from an investment perspective. Appraisers focus on this ratio because it provides insight into the financial performance of the property and its potential for generating revenue. While corridor widths, elevator capacity, and parking are important considerations in office building design, they do not directly measure the financial efficiency of the building as effectively as the net rentable area to gross area ratio.