Effective office space utilization can save your company significant money and improve employee satisfaction. You may have offices sitting empty most of the time but are still paying high rent. Conversely, if your offices are spaced with consideration, it can improve creativity and make your employees more relaxed.  Since the pandemic, over 69% of U.S. companies now use hybrid work models. The conversion to hybrid workspaces has drastically shaken up the types of spaces used in offices, often resulting in wasted areas.

By understanding the key metrics and using the right tools, you can identify underused areas, optimize layouts, and make data-driven decisions that cut expenses and boost employee output.

This article guides you through important metrics to consider, like occupancy rate, peak utilization, and cost per person. It shows you how to use tools like IoT sensors and space management software to track and optimize your workspace. With these insights, you can create more cost-efficient, flexible workspaces that meet the demands of your hybrid work model.

What is office space utilization?

Office space utilization measures how well your company uses its physical workspace. For example, measuring the number of desks or meeting rooms used helps you understand how your office floor plan aids your company goals. 

Companies typically express it as a percentage showing how much available space is used. For instance, a 60% utilization rate means 60 out of 100 desks are in use. They measure space utilization as businesses move to hybrid work models where staff are out of the office daily. 

When considering flexible workspaces, you should focus on space usage. Understanding space usage will help you spot areas that need improvement and make data-driven decisions about growing or shrinking your corporate real estate. Optimizing your space utilization has become a must-do strategy.

Core benefits of good office space utilization

Financial Savings 

Office space utilization helps reduce expenses by putting every square foot to good use. Based on data insights, you can decide to move to smaller offices or find new uses for different areas. Properly managing your workspace budget stops money from going to waste and ensures the space works harder for the company.

Better Productivity 

A smart office setup positively impacts productivity. In fact, 58% of employees report higher productivity in hybrid work environments, where flexibility is key.

Flexible workspaces allow you to accommodate how your employees like to work. You can do this by ensuring meeting rooms are free when teams need them or keeping quiet spots for focus. When staff can use the right areas at the right times, they're more relaxed and finish more tasks.

Sustainability

Making the most of office space helps reduce environmental effects. This could reduce the need to build or add to existing buildings. When your business uses its current spaces well, it lowers its carbon output and uses less energy. 

Global Workplace Analytics reports that hybrid work can save companies up to $11,000 per employee per year, while organizations like IBM save $50 million annually by reducing office space. These savings come from lower rent, reduced energy consumption, and smarter heating, cooling, and lighting management. Embracing flexible work arrangements not only lowers expenses but also supports sustainability goals.

12 office space utilization metrics and how to calculate them

Office space utilization metrics show how well spaces are being used. Keeping tabs on these metrics helps you make smart choices about managing resources. Tracking office space utilization metrics ensures employee productivity and collaboration. You could spend less or avoid cramped work areas if you have the right data. 

Peak utilization

Peak utilization shows how much space gets used at its busiest times. 

Check peak usage to see how much space is occupied during busy hours. By making the most of available space, you can identify high-demand areas, such as conference rooms and stop logjams. Let's say a conference room is always packed at certain times—you could set up a way to book it in advance or make more rooms like it.

• Formula: Utilization Rate = (Time Space is Occupied / Total Time Available) × 100
• Example: When a meeting room is open for 8 hours, but people use it for 4 hours, its use rate is 50%. Keeping tabs on use rates helps you spot spaces that get little action. This info can guide choices about moving things around or giving these areas a flexible purpose.

Average peak utilization

Average peak utilization shows how your workers use space during the busiest times. It is tracked over days, weeks, or months. Although this may seem the same as peak utilization, this metric is used to spot patterns and preemptively optimize your hybrid workspace.

Let's say people come to the office more on Tuesdays and Thursdays. To improve the employee experience, you could increase desk booking or set up more flexible work areas on those days. You could also open up more meeting spaces to handle the extra need for face-to-face talks.

Space occupancy rate

The space occupancy rate shows what percentage of your office is occupied at any given time. When a lot of your space is in use, it might mean you're using it well. But watch out—if it's too crowded, people might be unable to work efficiently.

On the flip side, if not much of your space is being used, you're wasting it. This could be a sign to rethink how you use that space or even downsize to cut costs. Keeping an eye on occupancy ensures your office layout is efficient and comfortable.

• Formula: Occupancy Rate = (Occupied Space / Total Available Space) × 100
• Example: Let's say you own 10,000 square footage of office space. If 6,000 square footage is used, your occupancy rate is 60%. This metric shows you how much of your office space people are using. It also points out any areas you're not using much. You might want to repurpose or downsize these spaces.

Meeting room utilization

Meeting room usage shows how often rooms are occupied compared to how often they're booked. This metric helps spot waste in hybrid work setups where people reserve rooms but don't show up.

If you notice rooms are often booked but unused, you can turn them into more flexible work areas. Consider improving your booking system to ensure rooms are effectively utilized. Making the best use of meeting spaces reduces waste and makes it easier for employees to access the necessary spaces.

Cost per person

Cost per person shows how much your company pays for office space per worker. This could include property costs, power bills, and upkeep.

Imagine your company has discovered it is overspending on underutilized space. To cut costs, you can downsize your office or improve the current setup.

With these metrics, your company can make data-driven choices about cost savings.

• Formula: Cost Per Person = Total Office Costs (Rent, Utilities, Maintenance) / Number of Employees
• Example: Suppose your total office costs hit $100,000 annually, and you've got 50 employees. In this case, each person costs you $2,000. This number shows how well you're using your money on office space. It can direct your space planning by showing you how to cut back or use your workspace better.

Total visitor traffic

Total visitor traffic measures the number of external visitors entering your office. External visitors could be potential clients, deliveries, or inspections. This metric is crucial for managing lobby areas, reception capacity, and overall building security.

Knowing your total visitor traffic helps you allocate resources effectively and ensure that visitor management processes are smooth and efficient.

• Formula: Total Visitor Traffic = Count of External Visitors Over a Period
  
  
• Example: If your office receives an average of 50 visitors daily, your reception area needs more seating or additional staff to handle peak times. Adjusting your lobby management strategies can improve the visitor experience and reduce congestion.

High-traffic areas

High-traffic areas refer to spaces within the office workspace that see the most foot traffic, such as hallways, common areas, and break rooms. Tracking these areas helps ensure they are designed to accommodate foot traffic safely and comfortably, reducing congestion and potential safety hazards.

• Formula: High-Traffic Area Rate = (Total Foot Traffic in Area / Total Office Foot Traffic) × 100
  
  
• Example: Suppose your hallway near the kitchen sees 60% of total office foot traffic. This insight might prompt you to widen the hallway or rearrange nearby furniture to improve flow and reduce bottlenecks, enhancing safety and efficiency.

Point-in-time occupancy

Point-in-time occupancy measures the number of people in the office at specific times. This data helps you manage resources, such as desk allocation and conference room availability, as well as adjust heating and cooling to match actual usage.

• Formula: Point-in-Time Occupancy = Number of People in Office / Total Office Capacity at a Specific Time
  
  
• Example: If your office typically sees 70% occupancy at 10 AM but drops to 30% by 4 PM, you could adjust your energy management systems to reduce lighting and HVAC usage in the afternoon, saving on utility costs.

Desk utilization

Desk utilization tracks how often desks are used. It helps you stay ahead of workstation allocation, ensures desks are not left empty for long periods and identifies opportunities for desk sharing or elimination.

• Formula: Desk Utilization Rate = (Hours Desk is Used / Total Available Hours) × 100
  
  
• Example: If a desk is available 40 hours per week but is used for only 20 hours, its utilization rate is 50%. Consider implementing a hot-desking policy to increase usage and free up space for other needs.

Room Capacity

Room capacity measures how many people a room can accommodate versus how many are actually using it. This metric ensures spaces are not overcrowded or underused, balancing comfort and space efficiency.

• Formula: Room Capacity Utilization = (Actual Room Occupancy / Maximum Room Capacity) × 100
  
  
• Example: If a conference room designed for 10 people consistently has only three occupants, you may consider converting it into a smaller meeting room or collaborative space, ensuring more efficient use.

Density

Density measures the number of people per square foot, helping balance comfort with space efficiency. Higher density can indicate better utilization but may negatively impact comfort and productivity.

• Formula: Density = Number of People / Total Office Square Footage
  
  
• Example: If your density is one person per 50 square feet and employees express discomfort, consider rearranging the layout or expanding certain areas to maintain a comfortable work environment.

Capacity vs. occupancy

Capacity vs. occupancy compares a space's total capacity to its actual occupancy, identifying areas that are underused or overused. This metric helps optimize space by ensuring that rooms are appropriately sized for their intended use.

• Formula: Capacity vs. Occupancy Ratio = (Actual Occupancy / Total Capacity) × 100
  
  
• Example: If only five people typically use a large conference room with a capacity of 20, consider redesigning the space for smaller meetings and repurposing the remaining area for other needs.

Real-life example: How Apartment List optimized office space utilization metrics

Nikki Chamberlain at Apartment List used Gable's dashboard to use their office space better. As a "virtual-first company," office space utilization metrics have helped them save money and get employees more involved.

She looked at metrics like how often workspaces were used, budget settings, and employee satisfaction. This gave her a clear picture of how people were using the spaces. When she saw more in-person meetups, she changed the rules on how much people could use the spaces and moved resources around to keep up.

For example, as more workers wanted face-to-face teamwork, Nikki used Gable's data to boost workspace access. She made better use of empty areas and moved money around to give her team what they needed.

This meant every workers could find the right space when needed, reducing extra property costs and making workers much happier. Gable's adaptable system lets Nikki handle many different workspace needs, from shared offices to private rooms, without more paperwork. Because of this, Apartment List could better care for its workers while keeping costs down even as the company grew.

Tools and technologies for tracking

New tools and tech are causing a revolution in how we keep tabs on office space use:

IoT Sensors

IoT (Internet of Things) refers to a network of physical devices, vehicles, appliances, and other items embedded with software that enables them to collect, exchange, and act on data.

Gadgets such as occupancy detectors and desk usage monitors give up-to-the-minute information on how people use spaces. These sensors can monitor movement, presence, and environmental factors like light and temperature, clearly showing how space is used throughout the day in real-time.

Space Management Software

Tools like Gable and other WeWork alternatives combine data, allowing facilities managers to watch utilization metrics, occupancy rates, and more on one screen. Office space utilization tracks analytics to see data trends and make smart choices.

Centralized Workplace Platforms

Software shouldn’t just monitor space usage. It must also work with other office tools to give a complete picture of workplace analytics. These integrated workplace management systems can handle desk reservations, book meeting rooms, and more. This ensures that the office space is used in the best way possible.

5 ways to maximize office space utilization

Getting the most out of your office space significantly impacts creating an efficient workspace, boosting productivity, and decreasing costs. Here are five ways to make better use of your office:

1. Implement rotating schedules

Rotating schedules help balance occupancy and prevent offices from getting too crowded. Your business can use space well by staggering the days or hours different teams work on-site.

For example, some staff might come to the office on Mondays, Wednesdays, and Fridays, while others show up on Tuesdays and Thursdays.

This approach makes the best use of space and supports hybrid work setups.

2. Utilize flexible office spaces

Adaptable office layouts meet staff's various work preferences and requirements. Flexible workspaces make it easier to tailor the workspace to different tasks. These layouts blend collaborative spaces and quiet areas for concentrated work. You can even add multipurpose zones that can be reshaped.

Try using movable dividers or height-adjustable desks based on employee needs. Incorporating versatile rooms allows employees to modify their office design into a usable space. This adaptability ensures efficient use of space regardless of changes.

3. Leverage employee feedback

Using employee feedback impacts making a workplace strategy that works for the people who use it.

Your employees work there daily and can point out problems and suggest ways to improve things. Regular surveys, boxes for ideas, and small group discussions are good ways to get input.

When you use what employees say to plan their spaces, you make changes to boost comfort, help people work better, and make everyone happier.

4. Automate space management

Automation tools impact office space efficiently by making it easier to manage resources.

Room resizers and auto-releases can change room bookings based on their use. This frees up spaces and ensures they're open when people need them.

For example, a system might reduce the booking size of a meeting room if fewer people show up than expected. This makes the bigger room available for other groups to use.

5. Optimize resource allocation

Making the most of office resources involves placing desks, meeting rooms, and equipment where needed without wasting space.

Systems that let workers book desks on any given day help avoid empty workstations or packed areas so people can grab a spot when they need one. Tools like Gable map out the office layout and show utilization data, such as how your employees use a space.

What are you waiting for?

In hybrid work environments, office space utilization has become essential.

You can make informed decisions that cut costs and boost productivity by monitoring important usage metrics.

Ready to manage your workspace? Optimize your office space with Gable space management software, a tool that makes running a hybrid workspace easy and effective.