Occupancy cost is the total cost of occupying property: rent, service charges, business rates, utilities, facilities services, insurance and fit-out depreciation. For most office-based organisations it is the second-largest cost line after payroll.
Finance teams usually track it as cost per square metre and cost per employee, then benchmark against peers. The hybrid-era question is different: cost per attendance. Dividing occupancy cost by actual person-days in the office reveals what each office visit really costs the business.