Key takeaways
- The 3-30-300 rule shows companies spend $3 on utilities, $30 on rent, and $300 on payroll per square foot annually
- A 10% boost in employee productivity saves $30 per square foot, compared to just $3 from lower rent or $0.30 from energy efficiency
- Apply the rule by reducing commute friction, prioritizing employee amenities, and using AI-powered space planning to optimize layouts
- The biggest ROI comes from investing in your people, not your building
Minimizing costs is at the top of every facility manager’s priority list. But when it comes to workplace spending, where should you focus your efforts? The answer might surprise you—and it comes down to a simple benchmark called the 3-30-300 rule.
Note: If you’ve heard of the 3-30-300 rule in relation to urban green space planning, that’s a different concept entirely. We’re talking about the facility management benchmark that helps companies optimize workplace costs and boost productivity, popularized by JLL.
This rule reveals the true cost hierarchy of running an office—and shows facility managers exactly where the biggest opportunities for savings lie. In this guide, we’ll break down what the 3-30-300 rule is, how to apply it to your workplace, and how to measure the results using AI-powered workplace intelligence.
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What is the 3-30-300 rule in facility management?
The 3-30-300 rule is a cost benchmark developed by global professional services firm Jones Lang LaSalle (JLL) that estimates the average annual spending per square foot for three major workplace expense categories:
- $3 per square foot on utilities (electricity, water, heating, cooling)
- $30 per square foot on rent or lease costs
- $300 per square foot on payroll and employee-related expenses
The most important insight from this rule? People costs are 10 times higher than real estate costs. This means that facility managers shouldn’t view physical space decisions in isolation—every workplace choice should consider its impact on employee productivity and experience.
Why the 3-30-300 rule still matters in 2025
While the original JLL benchmark was established years ago, the principle remains highly relevant as workplaces continue to evolve. With hybrid work models, AI-driven space optimization, and increased focus on employee experience, the 3-30-300 rule helps facilities teams prioritize investments that deliver the most significant ROI.
The math is simple: if you can make decisions that help employees become 10% more productive, you stand to save $30 per square foot. Compare that to finding office space with 10% lower rent (saving $3 per square foot) or improving energy efficiency by 10% (saving $0.30 per square foot). The biggest reward comes from addressing your largest cost—your people.
How to apply the 3-30-300 rule to your workplace
Now that you understand the cost breakdown, how do you actually put this rule into practice? The key is focusing on workplace decisions that enhance employee productivity, which is your largest cost center and biggest opportunity for savings. Here are three strategic areas where facility managers can make high-impact changes.
Cut down on commutes
Commute stress affects employee satisfaction before they even step into the office. While not every employee can live close to work, facilities teams can reduce this friction through strategic location choices and flexible policies.
Consider proximity to public transit, ease of parking, and neighborhood walkability when evaluating office locations. For existing spaces, implement flexible work policies that allow employees to optimize their schedules—working from home on days when commuting would disrupt deep work, and coming to the office when collaboration is most valuable.
OfficeSpace’s desk booking and “Who’s In” features help employees coordinate in-office days with their teams, making commutes more purposeful.
Prioritize amenities employees actually care about
Think about what surrounds your office. Are you near a couple of great lunch spots? A park? A trending coffee shop? Studies have shown that employees who take a lunch break have higher overall job satisfaction, and providing appealing options for breaks can give your team time to recharge. While renting an office outside of the downtown core may be appealing rent-wise, it might come with limitations on how your employees conduct their days. Allowing employees to step away from the office for lunch or a 15-minute coffee break gives them the chance to return with renewed energy.
Optimizing your office environment for efficiency and wellness
The good news? You can often combine energy savings with productivity gains. LED lighting that mimics natural daylight reduces energy costs while minimizing eye strain. Biophilic design elements—incorporating plants and natural materials—improve air quality and have been shown to boost both productivity and employee wellness.
Beyond physical elements, use AI-powered space planning to create layouts that support how teams actually work. Activity-based neighborhoods, flexible desk configurations, and strategically placed collaboration zones can dramatically improve space utilization while enhancing the employee experience.
Create stack plans in minutes with OfficeSpace’s AI space planning capabilities.
How do you measure the results of the 3-30-300 rule?
Sorting through the data that comes in the form of a utility bill is significantly easier than measuring productivity. However, when it comes to real savings, those utility bills are just pennies in the bigger picture.
So how do you measure productivity as a result of using the 3-30-300 rule?
1. Monitor employee health metrics
Partner with HR to track average sick days and absenteeism rates across your organization. Well-designed office environments with proper ventilation, natural light, and thoughtful layouts can reduce the spread of illness and support mental health. A decrease in sick days is a tangible indicator that your workplace investments are paying off.
2. Measure employee retention rates
Retention is one of the most clear-cut indicators of workplace satisfaction. Hiring and onboarding new employees costs significantly more than retaining current team members—even with salary increases factored in. Lost productivity during the transition period between one employee leaving and a new hire getting up to speed can span weeks or months. If your retention rates improve after implementing 3-30-300 principles, you’re likely on the right track.
3. Analyze space utilization and occupancy data
This is where AI-powered workplace intelligence becomes essential. Use real-time data to understand which spaces employees consistently use, when they prefer to work in-office, and whether your mix of meeting rooms, desks, and collaboration zones matches actual demand.
Track patterns over time to see if employees are actively choosing to come to the office, booking desks strategically, and using workplace resources to do their best work. This data reveals whether you’ve struck the right balance between flexibility and structure.
Explore how OfficeSpace workplace intelligence integrates presence data from Wifi, badge swipes, and IoT sensors to give you complete visibility over your office utilization
Start optimizing your workplace costs
The 3-30-300 rule offers a clear framework for facility managers: your biggest costs deserve your biggest attention. While it’s tempting to focus on reducing rent or cutting utility expenses, the math reveals a different priority—investing in employee productivity delivers returns that are 10 times greater than real estate savings and 100 times greater than energy efficiency gains.
In 2025, applying the 3-30-300 rule means combining strategic workplace decisions with AI-powered intelligence. The facilities teams seeing the greatest ROI aren’t just managing space—they’re using real-time data, predictive analytics, and workplace intelligence platforms to create environments where employees thrive.
Ready to see how OfficeSpace works? Take an interactive tour of OfficeSpace’s AI-powered workplace platform and explore how space planning, analytics, and employee experience tools work together to optimize your workplace.
FAQS
Who should be responsible for championing the 3-30-300 rule?
Increasing productivity is a company-wide responsibility. While facility managers are charged with optimizing office spaces and resources, it takes buy-in from HR and senior leadership to move the needle on major initiatives.
As the FM, don’t hesitate to advocate for decisions that positively impact both employees and company finances. Poll team leaders to understand what changes would help their teams be more productive, come to meetings with data-driven suggestions, and start small—test adjustments like adding biophilic elements or optimizing lighting before proposing larger renovations. Once your smaller initiatives show results, you’ll have the track record to champion bigger changes.
How accurate is the 3-30-300 rule in 2025?
While the specific dollar amounts may vary by location, industry, and company size, the proportional relationship remains accurate: payroll costs are roughly 10x rent costs, which are roughly 10x utility costs. The rule’s value isn’t in precise numbers—it’s in helping facility managers prioritize decisions that impact their largest expense category: people.
What tools help track 3-30-300 metrics?
Measuring utilities and rent is straightforward, but tracking productivity requires workplace intelligence tools. Look for platforms that integrate occupancy data (WiFi, badge systems, sensors), provide space utilization analytics, and offer AI-powered insights. The best solutions combine space management, employee experience tools, and real-time reporting in one platform.
Photo Credits: Shutterstock / fizkes, Shutterstock / bbernard, Shutterstock / LightField Studios
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