Office Space Utilization:
The Secret to Cost Savings

Office space utilization - cost savings

Office space utilization is a crucial aspect of office management, which involves analyzing and optimizing how space is being used to maximize productivity and minimize wasted space and resources. According to JLL’s occupancy planning trend report, 55% of prominent real estate teams aim to utilize office space between 70-89%. However, the current average utilization rate across various industries is approximately 60%. Regularly monitoring and implementing effective strategies can provide insights into office space utilization. Identifying areas of improvement can lead to cost savings, increased productivity, and an enhanced workplace experience for employees.

Why Office Space Utilization Is Essential for Businesses?

Office space utilization refers to the efficient and effective use of space within a facility or workplace. It is a crucial aspect of space management and involves analyzing and optimizing how space is being used to maximize productivity and minimize wasted space and resources.

In today’s modern workplaces, where space is often at a premium, it’s more important than ever to ensure that every square foot of space is being utilized to its fullest potential. Some companies use space utilization data to identify areas that are underutilized or overutilized to make informed decisions about how to allocate space and resources more effectively.

Some strategies for improving space utilization include implementing flexible work arrangements, such as desk sharing or remote work, which can reduce the need for dedicated workspaces and office space. Another approach is to implement activity-based workspaces, which are designed to support specific work activities and enable employees to move freely between different types of areas throughout the day.

Smart technology can also be used to improve office space utilization, with sensors and occupancy tracking systems providing real-time data on how spaces are being used. This data can be used to optimize the use of space, identify areas that need improvement, and make better decisions about how to allocate resources.

The Why – main reasons

Efficient office space utilization can lead to cost savings for the organization. Unused or underutilized space represents wasted resources that could be better allocated elsewhere. By optimizing the use of office space, organizations can reduce their real estate costs and improve their bottom line.

Well-designed office space can positively impact employee productivity. By creating an area that is comfortable, functional, and conducive to collaboration, employees are more likely to be engaged and productive. Additionally, optimizing the use of space can reduce distractions and create a more focused work environment, further improving productivity.

More flexibility – as organizations change and grow, their space needs may also evolve. Efficient office space utilization allows organizations to adapt to these changes more easily. By optimizing the use of space, organizations can accommodate new employees, new teams, or changing work patterns without the need for expensive renovations or relocations.

Efficient utilization of office space can also have environmental benefits. By reducing the space needed, organizations can reduce their carbon footprint and contribute to a more sustainable future.

How to Utilize Office Space?

1|  Evaluate your current space

Assess the layout, design, and functionality of your office space. Identify areas that are frequently used and those that are underutilized. Consider the needs and preferences of your employees and how much office space is required per person.

2|  Reconfigure your space

Once you have identified underutilized areas, consider how to reconfigure the space to suit your needs better. You may want to rearrange furniture, create new workstations or collaborative spaces, or repurpose areas currently being used for storage.

3|  Implement hot-desking or flexible seating

Hot-desking or flexible seating is a system where employees don’t have an assigned desk but rather use any available desk when they come to the office. This can reduce the amount of space needed per employee and increase collaboration.

4|  Make use of technology

Implementing technology solutions such as desk booking systems or meeting room booking systems can help ensure that space is being used efficiently. These systems can also provide valuable data on space usage, allowing you to make informed decisions about space allocation.

5|  Consider remote work options

Allowing employees to work from home or other remote locations can reduce the number of employees in the office at any given point in time. With more employees working remotely, you may have excess office space that is not being used effectively. By understanding how remote work affects your office space utilization, you can make informed decisions about downsizing your office space or optimizing it for a hybrid work environment.

How to Measure Office Space Utilization?

Conduct an occupancy survey

Conducting an occupancy survey is the first step in measuring office space utilization. This survey will help you understand how many people use your office space and how often. You can conduct this survey manually or using technology like sensors, cameras, or software tools. Analyzing desks, meeting rooms, and other space occupancy will help you understand which areas are underutilized and which are in high demand. You can use this information to optimize your office layout and better allocate your resources.

Measure foot traffic

Measuring foot traffic is another effective way to determine office space utilization. You can track foot traffic using sensors installed in different office parts or by analyzing data from security cameras. This will help you understand which areas of your office are frequently used and which areas need to be more utilized.

Utilize the utilization metrics

There are several key metrics you can use to measure office space utilization, like:

  • Occupancy Rate calculates the percentage of available office space employees use. It is calculated by dividing the number of occupied workspaces by the total number of available workspaces.


  • Desk Utilization – determine how frequently individual workstations are occupied. It is calculated by dividing the total number of hours each workstation is occupied by the number of available hours during a given period.


  • Meeting Room Utilization calculates how often meeting rooms are being used. It is calculated by dividing the total number of hours that meeting rooms are booked by the number of available hours during a given period.


  • Footfall Traffic – the number of people entering or exiting a specific area, such as a lobby or entrance. It can help to determine peak hours and identify areas that may need more or less space.


  • Facility Costs – calculate the cost per square foot of office space, including rent, utilities, and other related expenses. Comparing this cost to the occupancy rate can help identify potential areas for cost savings.

How to Utilize Office Space Using a Desk Booking Solution?

desk booking solution is software that enables employees to reserve a workspace online in advance, tracking the space utilization and giving insights for better office space utilization. Here are some ways to utilize office space using desk booking:

1|  Implement a hot-desking policy

With a desk booking solution, you can implement a hot-desking policy where employees are not assigned to a specific desk but can reserve a desk as and when needed. This ensures that desks are kept and occupied while employees work from home or on vacation.

2|  Introduce flexible work arrangements

By allowing employees to reserve desks in advance, you can introduce flexible work arrangements like staggered work hours or remote work, which can reduce the number of employees in the office at any given point in time. This will help you save on office space and reduce your overhead costs.

3|  Optimize space allocation

Desk booking software can provide data on how often different areas in the office are being used. This can help you optimize the space allocation and ensure you use the available space efficiently. For example, if specific areas are being used more frequently than others, consider reallocating the space or introducing new amenities to make those areas more attractive.

5|  Manage meeting rooms and other shared spaces

With a desk booking solution, you can also manage the office’s meeting rooms and other shared spaces. This ensures that these spaces are not left unused and that they are available when needed. You can also track how often different meeting rooms are being used and optimize their allocation accordingly.

Office space utilization plays a vital role in office management, as it helps businesses optimize productivity, reduce costs, and create a sustainable workplace. By evaluating and maximizing the use of space, implementing technology solutions, and allowing remote work, organizations can reduce real estate costs, enhance employee satisfaction and productivity, and create a more functional workplace. Therefore, by continuously monitoring and improving space utilization, businesses can create a more efficient and productive workplace that benefits both the employees and the organization.

Still deciding?
Try TableAir for free!

Over 60,000 users worldwide can’t be wrong – see for yourself why they choose TableAir.