Hi guys, I haven't posted much, but have been lurking.
To the original question, I believe the designer has a choice to either consider both new & existing bldgs as one building, or to have the new bldg assume a fire distance and rate the exterior walls accordingly. Either way there will be different consequences for how the code is applied.
Regarding the sidebar discussion on multiple buildings on one lot:
I agree with Builder Bob here. The "two or more buildings on one lot" are to be considered one building. I'll break it down how I follow it in the code. Under 705.3 it is made clear:
Chapter 7 - Fire and Smoke Protection Features
SECTION 705 EXTERIOR WALLS
705.1 General. Exterior walls shall comply with this section.
705.3 Buildings on the same lot. For the purposes of determining the required wall and opening protection and roof-covering requirements, buildings on the same lot shall be assumed to have an imaginary line between them.
Where a new building is to be erected on the same lot as an existing building, the location of the assumed imaginary line with relation to the existing building shall be such that the exterior wall and opening protection of the existing building meet the criteria as set forth in Sections 705.5 and 705.8.
Exception: Two or more buildings on the same lot shall either be regulated as separate buildings or shall be considered as portions of one building if the aggregate area of such buildings is within the limits specified in Chapter 5 for a single building. Where the buildings contain different occupancy groups or are of different types of construction, the area shall be that allowed for the most restrictive occupancy or construction.
This exception is specific to exterior walls and opening protection within those walls. If you have assumed these portions as one building, then there would not be exterior wall protection between "itself", and there would be no imaginary line between them.