Separate the vertical route question from the whole building

A business owner evaluating a small multistory building may hear that an elevator is unnecessary because the property has only two floors. That statement needs a facility-specific review before the owner prices the upper floor as usable space for its intended operations. Story count is relevant, but it is not the only fact, and an elevator exception does not remove the other accessibility obligations that apply to the premises.

The Department of Justice’s published ADA standards and regulatory provisions describe an elevator exception for certain facilities below three stories or below 3,000 square feet per story. Specified uses, including shopping centers or malls, professional offices of health care providers, and certain transportation facilities, receive different treatment. The provisions also expressly preserve other accessibility requirements. Identify whether the project is new construction, an alteration, or an existing-facility assessment before deciding which rules apply.

Give the reviewer the proposed use of each level, not merely the seller’s current occupancy description. An owner planning a health care office cannot assume that the conclusion for the previous general office use carries over unchanged.

Price the usable area after the scope determination

Consider a hypothetical two-story building with 2,400 square feet on each level. Its advertised 4,800 square feet supports an owner’s expansion model. The proposed purchase budget assumes $160 per square foot, or $768,000, before improvements. If the intended operations require a vertical access project, the owner must evaluate that project before treating all advertised area as readily usable.

Assume a preliminary professionally developed scenario assigns $145,000 to vertical access and related construction, plus $30,000 to other necessary work. The combined purchase and identified improvement estimate becomes $943,000 before financing, transaction expenses, and contingency. These hypothetical costs are not an elevator quote or a legal determination. They reveal that the advertised area and price alone do not establish the effective cost of occupancy.

Compare a single-level alternative on the same complete scope. Include access, egress, operations, maintenance, and future space requirements in both proposals. If the small-building exception applies, separately evaluate whether the business still benefits from vertical access for customers, employees, deliveries, or future activities. A permitted design choice and a sound operating choice are related but distinct judgments.

Evaluate the proposed alteration and future uses

Ask the design team to document story and mezzanine classifications, floor areas, public use, employee activities, and any excluded facility category. Include the renovation scope and the existing routes. A brief statement that the property is small does not explain the actual basis for a conclusion.

An exception from connecting levels does not authorize inaccessible elements on a level that otherwise must comply. Review the applicable rooms, doors, fixtures, and routes within each level through their own requirements. Keep the analysis narrow enough that a vertical-access conclusion does not accidentally become a blanket statement about the entire building.

If the owner anticipates adding another professional service, leasing part of the building, or moving public functions upstairs, include that possibility in the review. A later use change can alter the relevant facts and create additional design questions. Reserve space and infrastructure only on the basis of a supported future plan, and compare the cost of doing preparatory work now with the cost and disruption of reopening the premises later.

Retain a written scope and update it when facts change

Keep the measured plans, use schedule, project description, applicable code analysis, exception determination, and estimated construction alternatives. The file should identify the rule applied and the facts supporting it. A seller’s advertisement, prior occupancy approval, or oral assurance from a contractor does not provide the same explanation.

Make the acquisition contingency or renovation authorization reflect unresolved questions. The owner can request the necessary review during diligence and price the resulting scope before committing to final construction. When a design is accepted, preserve the assumptions in the facilities records so later changes are checked against the same baseline.

Federal ADA provisions do not necessarily resolve state or local building requirements, existing-facility barrier removal, employee accommodations, or every permissible vertical transportation device. Obtain a coordinated determination for the actual premises and intended operations. The useful owner decision is to establish which floors can support the planned business, what access improvements are required or chosen, and how those costs affect the acquisition and occupancy budget. That documented analysis makes a small building’s apparent economy reviewable before the business depends on it.

Sources & further reading

Consult the original guidance and its effective dates. These references support the educational discussion; their application depends on the specific facts.

This guide was prepared with AI assistance for AE Tax Advisors. No individual professional review is claimed. Examples are illustrative, not client results. Confirm current law, state treatment, and implementation with a qualified professional. Editorial standards.