Is the 3-30-300 rule still a good benchmark for a company’s costs per square foot?
Asked a year ago
Hello, I need to find a benchmark for my law firm's costs per square foot for our workspace. I've heard of the 3-30-300 rule that suggests the average costs per square foot for a building are roughly $3 for utilities, $30 for rent/mortgage, and $300 for payroll. I'm not sure if this rule is still relevant because it may not take changes in market conditions or new technology into account. Is the 3-30-300 rule still a good benchmark or are there better alternatives we should consider for a legal practice? Many thanks.
Kamari Hoffman
Monday, April 03, 2023
The 3-30-300 rule is a rough guideline that demonstrates the relative proportions of utilities, rent, and payroll costs for a company. While it can provide a general idea of cost distribution, it may not accurately represent current market conditions, industry factors, or technological changes.
As a legal practice, it is usually more effective to consider industry-specific benchmarks and local market conditions. For example, commercial real estate data providers or industry reports can offer more accurate and up-to-date benchmarks for costs per square foot in your location and industry.
Additionally, considering other factors like office space layout, workforce composition, and technological advancements might also help. These can, in fact, influence costs per square foot. By examining both industry-specific benchmarks and unique factors affecting your company, you might gain a better understanding of your costs per square foot and make more informed decisions regarding workspace management.
Please follow our Community Guidelines
