Workplace glossary

What is Cost per Square Metre?

Definition & practical guide1 min read

Cost per square metre (per square foot in the US and UK markets that still quote imperial) is the standard unit for comparing property costs across buildings and cities: total occupancy cost divided by floor area. Prime CBD space can cost several times the rate of fringe locations for the same headcount.

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The ratio only becomes actionable when paired with density and occupancy: a cheap building used badly can cost more per person than an expensive one used well. See also occupancy cost.

Common questions

What does Cost per Square Metre mean in simple terms?

Cost per square metre (per square foot in the US and UK markets that still quote imperial) is the standard unit for comparing property costs across buildings and cities: total occupancy cost divided by floor area. Prime CBD space can cost several times the rate of fringe locations for the same headcount.

How is Cost per Square Metre measured and reported?

The ratio only becomes actionable when paired with density and occupancy: a cheap building used badly can cost more per person than an expensive one used well. See also occupancy cost.