What is the relationship between gross building area and gross floor area?

The correct understanding centers on the differences in how gross building area and gross floor area are defined and measured. Gross floor area refers specifically to the total usable space within a building, measured from the interior walls and typically includes all floors of the building, excluding certain areas such as external walls, and does not account for features like balconies or external stairways.

Conversely, gross building area considers the complete external dimensions of the building. This means it encompasses all enclosed spaces and potentially some external features that contribute to the overall footprint of the structure.

By understanding that gross floor area is typically measured from within the building and gross building area is measured externally, one can appreciate the significant distinction in their definitions. This distinction highlights the relevance of internal versus external measurements in real estate evaluations, enabling more accurate assessments of property usage and value.