Knowledgebase

What are "typical" occupancy costs? (FAQ)

See http://nccsdataweb.urban.org/kbfiles/525/M&G.pdf: Table 4 on p.28.

This study on Management and General Expenses shows a range of 2.9% to 11.5% at the 25th and 75 percentiles for occupancy costs. Thus, 25% of orgs had occupancy costs less than 2.9% of total expenses and 75% had costs of less than 11.5%.

A draft analysis -- attached -- of 2005 data (from IRS Statistics of Income Public Charities File) shows somewhat lower levels. (The universes are defined a bit differently and aren't comparable to the earlier work.)

Bottom line: 3-12% range would be "typical," although one can always find outliers in the top and bottom 25%.

KEYWORDS: RENT, OFFICE SPACE, LEASE, LEASING, BUILDING, FUNCTIONAL EXPENSES