This study examines the importance of real estate and the role that buildings play in the overall cost structure of businesses

Publication Date 16 Nov 2016
Title The Proportion of Underlying Business Costs Accounted For By Real Estate - Update Report
Category BCO Research & Policy
Member CostFree
Non Member CostFree
Description It is often quoted that in the breakdown of overall operational costs 80% goes to salaries and 10% to property with other expenses making up the rest. This study undertaken on behalf of the BCO by Ramidus Consulting Ltd sets out to explore whether there is any truth in the 80:10:10 rule of thumb and outlines an approach for businesses to test the situation in their own organisations. The findings show that the 80:10:10 rule is too simplistic and although salaries tend to dominate, in reality the proportion accounted for by property and non-property costs is higher and therefore these play a greater role in the determining the overall cost to a business than the accepted wisdom would suggest.