How much should occupancy costs represent as a percentage of my business expenses?
Category:
Commercial Leasing – Tenants & Owner-Users
There is no single percentage that applies to every business. Appropriate occupancy costs vary significantly depending on the industry, margins, customer traffic, staffing requirements, and business model.
Rather than focusing solely on rent, consider the total occupancy cost, including common area maintenance (CAM), insurance, taxes, utilities, maintenance responsibilities, and other lease-related expenses.
Understanding your total occupancy costs helps support better long-term financial planning.