Occupancy Cost Benchmarking Guide
The rent line is only part of occupancy cost. Benchmark the full load to negotiate renewals and decide whether relocation pays off.
Components of true occupancy cost
- Base rent — Per-sqft asking or effective rent (after concessions).
- CAM / operating expenses — Common-area maintenance, utilities, taxes, insurance passed through.
- Fit-out amortization — Tenant-improvement cost spread over the lease term.
- Moving & transition amortization — One-time relocation cost spread over the stay.
- Property tax (if owned) — Direct if you own; embedded in CAM if leased.
- Downtime & productivity — Hidden cost of a poorly planned move, often larger than the move itself.
Renewal vs relocation
Spread fit-out and one-time moving cost over the expected stay so you compare like with like against a renewal’s escalations. The Program Budget tool helps quantify the relocation side of that tradeoff.
Downtime and productivity loss from a poorly planned move often exceed the move itself — keep it in the model when benchmarking.
whrg.com, www.crowell.com, www.kpmg.com, www.calt.iastate.edu, www.congress.gov, www.irs.gov, finance.yahoo.com, jilaniplace.com, www.vectorinstallations.com, www.vectorinstallations.com, ocnjdaily.com, agmoving.com, lincolnmoving.com, www.dir.ca.gov, sam.gov, www.fmcsa.dot.gov, www.bls.gov, www.worldwideerc.org, www.atlasvanlines.com, www.cbre.com, www.irs.gov. Figures are model benchmarks, not quotes. ReloFig never sells your information.