Dictionary of Real Estate Terms: efficiency ratio
efficiency ratio
the proportion of a building's area that is leasable space.
Example: An office building contains 200,000 square feet of space. Of this amount, 10,000 square feet are taken up by elevators and other physical plant equipment. Another 5,000 square feet are taken up by the sales and management office. Restrooms and hallways occupy 30,000 square feet. The lobby is 5,000 square feet. Total space available for lease is 150,000 square feet. The efficiency ratio is 150,000:200,000, or 75%.
