Occupancy cost

Occupancy costs are the whole life costs of buildings and their associated land from occupancy until disposal. These costs may be incurred on a regular or irregular basis.

Occupancy costs are those costs related to occupying a space including; rent, real estate taxes, personal property taxes, insurance on building and contents, depreciation and amortization expenses. This is generally higher in new entrants to a market due to the escalating real estate prices This type of cost cover the whole society since land is inextricably link to human life. Watch out for occupancy cost when you calculate the cost of employee.

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