What Is The Average Utility Cost For A Small Business?

Updated: October 8th, 2022

What Are Utility Costs?

Utility costs are the expense for all the services you usyour office, including electricity, gas, fuel, telephone, water, sewerage, and more.

How Much Do Utilities In An Office Space Cost?

The average cost of utilities for commercial buildings is $2.10 per square foot. (source)

That means the average utility cost for a 700 square foot location can range from a minimum of $200 per month to a maximum of $1150 per month.

Typical Utility Costs For A Small Business

Although there are several utilities are required in a small business, but here is the list of typical utilities you need,

  • Water and sewer
  • Electricity and natural gas
  • Garbage disposal
  • Telephone
  • Internet

Office Space Utility Cost Factors

The cost of utilities depends on many factors, here are the main ones:

  1. Weather conditions: Although rain and snow can prove to be beneficial for utility costs. However, hot weather can significantly increase the electricity cost.
  2. Fuel prices: Electricity is generally created from fuels. And fuel prices vary, which can shift the utility costs.
  3. Transmission and distribution: The transmission and distribution system needs to maintained when necessary, which can fluctuate your utility costs.
  4. Location: Location can also fluctuate utility costs. Generally, the cities that are big and distant has higher utility cost than small and near cities.

Examples Of Utility Costs (Per Location)

Here are the average costs of utilities per location.

City Avg Utility Cost Per Sq Foot
New York $3.75/sq foot
San Diego $7.01/sq foot
Boston $6.22/sq foot
Houstan $6.86/sq foot
Los Angeles $4.62/sq foot

Best Tools To Estimate Your Monthly Utility Costs

We've put together a list of a few tools to help you calculate your expected monthly utility cost:

  • Cost comparison tool: A quick tool that compares the rates for actual consumption and estimated consumption.
  • Energy Bill Estimator: It is a tool that only calculates your potential electricity bill based on historical information and monthly past usage.
  • Bill Calculator: This is an online tool that you can use to have an estimate of your utility bill. You have to provide all the necessary information, and your bill is ready in a few minutes.

How To Lower Your Utility Costs

  1. Conduct an energy audit - An energy audit is a professional assessment of your energy usage. It helps to understand your extra consumption and reduce them. Therefore, saving your utility costs.
  2. Upgrade devices - Upgrading to the latest energy-efficient devices can do wonders in the utility costs. For instance, a new laptop will save more energy than a traditional desktop.
  3. Use LED lighting - The one-time cost for shifting to LED lights is totally worth it. Several options will lower your utility costs in an office.
  4. Maintain equipment - Maintaining your everyday equipment will help you reduce your utility costs and improve overall efficiency.
  5. Use power save - The power-saving feature is one of the most underrated tracks. Most people aren't aware of this mode that can reduce utility costs when devices aren't used.