To help decision-makers determine where their real-estate cost savings will be most valuable, Jones Lang LaSalle (JLL)—a global professional services company specializing in real estate—established the 3-30-300 formula. The idea is that there is an average order of magnitude for a company’s cost per square foot—$3 in utilities, $30 in rent, and $300 in payroll.
A 10% increase in energy efficiency translates to a $.30/sq ft cost savings. A 10% reduction in rent yields a $3.00 cost savings. A productivity improvement of 10% equates to $30/sq ft of value.
This formula demonstrates why changes to the workplace experience have the greatest impact. Watch the video below to learn more. Our page, “Maximize Real Estate Savings With the 3-30-300 Rule,” includes a form so you can talk to us about reducing your real estate costs. To learn more about reducing real estate costs, visit our resource page — Workplaces Strategies for Commercial Real Estate and Facilities Professionals.