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Office Cost Estimates

The Potential for Dramatic Workforce Productivity Improvements

Typical costs of a 25-year lease show that salaries out way energy costs by about 30-fold.

Typical office building running costs

Therefore, factors that influence the effectiveness of staff will lead to far greater financial impacts than those which affect building efficiency.

For companies with air conditioning, justification for investments in window film tend to be made on the savings in their soaring energy costs.

Also, major savings are made in the cost avoidance of upgrading to an air conditioning system which can cope better.

Payback periods justified on energy savings are usually between 1.5 and 5 years.

However, it is the benefits associated with human productivity, where dramatic benefits are achievable.

Research summarized on this site demonstrate that management of glare, natural daylight and heat can improve productivity by a few percent up to 25 percent.

Breakdown of occupancy costs on a typical 25-year office lease.

Salaries of occupants85%
Building construction cost excluding land6.5%
Heating, Cooling and Lighting3%
Building, Mechanical and Electrical Maintenance2.75%
Furnishings and Furniture1.75%
Cleaning, Security etc.1%