CFOs and real estate leaders are facing intense pressure to justify office investments in a post-pandemic world where hybrid work has changed how employees use physical workspaces. Many businesses continue to pay for underused offices, empty desks, and inefficient layouts, unaware that they could save as much as $11,000 per employee annually by optimizing workspace usage.

Rethinking your workplace strategy can reduce real estate costs, enhance the employee experience, and maximize productivity, all while ensuring that every square foot adds value to your business.

This guide outlines the best strategies for optimizing office space, from data-driven space planning to flexible workspace solutions, enabling companies to scale their office needs efficiently.

What is office space optimization?

Office space optimization is the strategic use of workspaces to maximize efficiency, reduce costs, and enhance employee experience. With the rise of hybrid work, companies are reassessing how much space team members need - ensuring that every square foot serves a purpose.

A poorly designed office leads to wasted costs, disengaged employees, and unused meeting rooms. Research shows that 40% of office space goes unused on a given workday, making real estate one of the most wasteful expenses for businesses.

Optimized floor plans are designed for employee productivity, collaboration, and cost efficiency, ensuring companies only pay for the office space requirements they use.

Key office optimization metrics to track

To optimize office space utilization, you need real-time data and performance metrics that reveal how employees interact with the workspace. By tracking occupancy data with these key metrics, businesses can make data-driven decisions. This can improve efficiency, reduce waste, and enhance the employee experience.

1. Desk utilization: What percentage of assigned desks are used daily?

Traditional office setups often allocate desks one-to-one, assuming every employee needs a dedicated workspace. However, with hybrid work models, many desks sit unused most of the week, leading to wasted real estate costs. Tracking desk utilization helps companies:

• Identify underused workstations and reallocate resources.
• Shift to hot desking or shared desk setups to maximize efficiency.
• Understand if assigned seating is justified or needs adjustment.

Example: A company with 50 assigned desks but only 30 used daily could eliminate wasted space and transition to flexible seating, reducing real estate costs.

2. Room capacity: Are meeting rooms being booked and used effectively?

Meeting rooms are among the most misused spaces in offices with hybrid and remote work - some are overbooked, while others remain empty. Measuring room capacity ensures:

• Right-sized meeting spaces – Small teams aren't taking up large boardrooms unnecessarily.
• Efficient scheduling – Prevent double bookings and ensure teams always have available collaboration spaces.
• Balanced office design – Identify whether more collaboration spaces or individual workstations are needed.

Example: If your largest conference room is booked 80% of the time but used by fewer than 5 people, you could reconfigure the space into multiple smaller meeting rooms.

3. Office density: Does the space feel crowded or empty?

Crowded offices lead to discomfort and distraction, while empty offices lack energy and fail to meet different employee work styles. Tracking density helps businesses:

• Ensure enough available space per employee for a comfortable and productive work environment.
• Balance collaborative vs. quiet zones based on usage data.
• Adapt layouts dynamically based on attendance trends.

Example: If some office zones feel overcrowded, reconfiguring the floor plan to add breakout areas or flexible seating can improve flow and employee satisfaction.

4. Occupancy rate: How many employees come in on an average day?

Understanding how many employees use the office is crucial for space planning. Monitoring occupancy rates helps companies:

• Right-size their office footprint to avoid leasing more space than necessary.
• Predict peak office usage days and schedule team gatherings accordingly.
• Adjust seating and resources to better align with employee attendance patterns.

Example: If an average office is only 60% occupied, you can downsize or introduce flex office strategies.

5. Space efficiency: How well does the available square footage support work activities?

Every square foot should be designed with functionality in mind. Measuring space efficiency helps companies:

• Ensure spaces match actual work behaviors (e.g., more collaboration zones if teamwork is a priority).
• Eliminate dead zones – office areas that aren't being used at all.
• Reallocate space based on evolving workforce needs.

Example: If a quiet work area is empty while demand for collaboration spaces is high, converting it into a shared project room would improve efficiency.

6. Cost per employee/square foot used: What's the financial impact of office space per employee?

Office space is one of the largest fixed costs for businesses, so measuring cost per employee ensures budgets are allocated effectively. By tracking:

• Cost per workstation, businesses can identify opportunities for downsizing or restructuring leases.
• Cost per square foot, companies can determine whether they're overpaying for underutilized space.
• For hybrid work savings, companies can compare expenses pre- and post-optimization to measure financial impact.

Example: If moving to flexible workspaces saves a company $3,000 per employee per year, that's millions saved annually for large organizations.

7. Headcount planning: Is your office set up to scale with workforce changes?

Workplaces should be future-proofed to accommodate growth or downsizing without excessive cost or disruption. Tracking headcount planning ensures:

• Seating capacity matches workforce fluctuations.
• Real estate decisions align with hiring projections.
• Flexibility is built into the office strategy for unexpected growth or downsizing.

Example: A company expecting a 20% increase in hiring within a year may opt for flexible coworking spaces rather than expanding a long-term lease.

Key strategies for optimizing office space

1. Use workplace data to drive space decisions

Office space optimization should always be data-driven. Rather than making assumptions, companies need insights into how their spaces are being used. Office space optimization is a critical component of a broader workplace strategy that aligns real estate decisions with business objectives. Consider investing in office management software to ensure your data is accurate.

How to use data for smarter space planning:

• Track office attendance: Use tools like Gable to monitor who's in the office and ensure the space reflects employee habits.
• Analyze meeting room usage: Are conference rooms overbooked, or do they sit empty? Adjust layouts based on usage trends.
• Monitor desk occupancy: Hot desking and shared workstations help reduce the need for assigned seating in hybrid offices.
• Assess real estate costs vs. usage: Identify underused locations and redirect funds to flexible workspace solutions.

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2. Reduce fixed office costs with flexible workspaces

Many companies overpay for unused space due to long-term leases. Hybrid work has changed how often employees come into the office, making flexible office solutions a smarter financial move.

Why flex spaces are the future:

• Eliminate wasted real estate costs: Pay only for the needed space rather than maintaining half-empty offices.
• Scale up or down with business needs: Expand or reduce office capacity without the risk of long-term leases.
• Give employees a choice: Offer access to on-demand coworking spaces, ensuring employees can work from professional, well-equipped locations.

Checkr reduced real estate expenses by 51% while maintaining workplace flexibility by transitioning to on-demand workspaces with Gable.

3. Optimize office layout for hybrid work

A traditional office layout doesn't fit modern workforce needs and disregards employee well-being. Many workplaces still allocate too much space to assigned seating while failing to provide collaboration areas, focus zones, and breakout spaces.

Hybrid-friendly layout adjustments:

• Shift to activity-based workspaces – Create spaces for deep focus, team collaboration, and social interaction.
• Reduce dedicated desks – Introduce hot desks and shared workstations to better use space.
• Upgrade meeting spaces – Design versatile rooms with video conferencing tools, ensuring seamless hybrid collaboration.

Ironclad used Gable's workplace analytics to adjust office design based on actual attendance trends, ensuring employees had the right balance of workstations and meeting spaces.

4. Improve employee experience with smarter space management

Efficient office space optimization doesn't just save money. It improves employee engagement and boosts productivity. Hybrid employees who feel supported in their work environment are 30% more engaged.

How to design a space employees want to use:

• Offer workplace booking systems – Gable's desk and meeting room booking tools make in-office scheduling seamless.
• Enhance office amenities – Provide ergonomic furniture, quiet pods, and well-lit collaboration spaces.
• Encourage flexibility – Give employees control over where and how they work, fostering higher satisfaction and productivity.

Common challenges in office space optimization & how to overcome them

Optimizing office space sounds straightforward, but real-world obstacles often get in the way. From outdated leases to employee resistance, these challenges can delay progress and create friction. The good news? Each one has a practical solution that doesn't require a complete office overhaul.

Challenge: Offices feel underused, but leadership is unsure how to optimize space

Many companies suspect their office isn't being used efficiently, but they lack the data to pinpoint where the problem lies. Without visibility into occupancy patterns, it's hard to justify changes or invest in the right solutions.

Solution: Implement workplace analytics to track real-time occupancy trends and adjust layouts accordingly. Tools like Gable provide detailed insights into desk usage, meeting room bookings, and peak attendance days, helping you make informed decisions about space allocation. Once you have data, you can confidently reconfigure underused zones, right-size your footprint, or shift resources to high-demand areas.

Challenge: Long-term leases make downsizing difficult

Businesses locked into multi-year leases often feel trapped paying for space they no longer need. As hybrid work reduces office attendance, companies are stuck with fixed real estate costs that don't reflect actual usage.

Solution: Transition to flexible office space solutions that scale with business needs. Instead of committing to large headquarters, companies can combine a smaller anchor office with access to on-demand coworking spaces through networks like Gable. This approach provides cost flexibility while ensuring employees still have professional workspaces when needed. For companies unable to exit their leases immediately, subleasing portions of unused space or negotiating early termination clauses can also provide relief.

Challenge: Employees resist coming into the office

Even with a well-designed space, employees may prefer working from home if the office doesn't offer a compelling reason to commute. If the office experience mirrors what they can do at home, attendance will stay low.

Solution: Make office visits purposeful by designing engaging, collaboration-friendly spaces. Rather than rows of individual desks, create environments that support teamwork, brainstorming, and social connection—things remote work can't replicate. Offer amenities like ergonomic furniture, private focus rooms, and upgraded meeting spaces with top-tier video conferencing tools. Additionally, consider aligning office days with team events, workshops, or leadership office hours to give employees a reason to be on-site. When the office enhances productivity and connection rather than simply providing a place to work, employees are more likely to use it.

Challenge: Space planning feels reactive instead of strategic

Without a long-term vision, companies end up constantly reacting to immediate needs—adding desks when hiring spikes, then scrambling to downsize during layoffs. This reactive approach leads to inefficient layouts, wasted spending, and employee frustration.

Solution: Build flexibility into your office strategy from the start. Use modular furniture, moveable partitions, and adaptable floor plans that can shift as your workforce evolves. Track headcount planning alongside space utilization data to anticipate future needs rather than responding after the fact. Flexible workspace agreements also allow businesses to expand or contract without long-term financial commitments, ensuring your real estate strategy aligns with business growth.

Challenge: Leadership sees office space optimization as a cost-cutting measure, not an investment

Some executives view space optimization purely as a way to slash real estate budgets, which can result in cramped, uncomfortable offices that hurt employee morale. If optimization is only about reducing square footage, the long-term impact on productivity and retention can be negative.

Solution: Reframe office space optimization as an investment in employee experience and operational efficiency. Yes, it reduces costs, but it also creates better work environments, improves collaboration, and boosts engagement. Present data showing how optimized workspaces lead to higher productivity, lower turnover, and stronger company culture. When leadership understands that thoughtful space planning enhances both financial performance and employee satisfaction, they're more likely to support smart investments rather than just cuts.

Calculating the ROI of office space optimization

Understanding the financial impact of office space optimization helps CFOs and real estate leaders make confident decisions about workspace investments. While the upfront costs of implementing new systems or redesigning layouts may seem significant, the long-term savings and productivity gains typically deliver substantial returns.

Key cost savings to measure

Real estate expense reduction: The most immediate ROI comes from reducing your physical footprint. Companies that transition from traditional office models to hybrid-flexible strategies often see 30-50% reductions in real estate costs. For a company paying $50 per square foot annually, downsizing from 50,000 to 30,000 square feet saves $1 million per year.

Operational cost improvements: Smaller, more efficient offices mean lower utility bills, reduced maintenance expenses, and decreased cleaning costs. These savings compound over time, with some organizations reporting 20-30% reductions in operational overhead after optimization.

Avoided expansion costs: Instead of signing expensive new leases when hiring, optimized spaces with flexible seating and activity-based layouts can accommodate 20-30% more employees without additional square footage. This defers or eliminates costly expansions.

Productivity and retention benefits

Employee productivity gains: Well-designed spaces that support focused work, collaboration, and flexibility lead to measurable productivity improvements. Research shows that employees in optimized workspaces report 15-20% higher satisfaction with their work environment, which correlates directly with output and engagement.

Reduced turnover costs: Poor office experiences contribute to employee dissatisfaction and attrition. Since replacing an employee typically costs 50-200% of their annual salary, improving workplace quality through optimization can save significant recruitment and training expenses. Even a 5% improvement in retention delivers six-figure savings for mid-sized companies.

Faster onboarding and collaboration: Optimized offices with clear wayfinding, efficient booking systems, and collaborative spaces help new hires integrate faster and existing teams work more effectively together, reducing time-to-productivity for new employees.

ROI calculation example

Consider a 200-employee company with 40,000 square feet of office space at $45 per square foot ($1.8M annually):

After optimization:

• Reduced footprint to 25,000 sq ft through flexible seating and hybrid model
• Real estate savings: $675,000/year
• Operational cost reduction (utilities, maintenance): $135,000/year
• Implementation costs (software, redesign, furniture): $200,000 one-time

Total first-year ROI: $610,000 net savings (305% return on investment) Ongoing annual savings: $810,000

Beyond year one, the savings continue while implementation costs don't recur, making office space optimization one of the highest-ROI workplace investments companies can make.

Tracking your optimization ROI

To measure your specific ROI, track these metrics before and after optimization:

• Cost per employee (total real estate + operational costs ÷ headcount)
• Cost per square foot utilized (total costs ÷ actively used square footage)
• Employee satisfaction scores related to workspace quality
• Voluntary turnover rate
• Space utilization percentage
• Average desk and meeting room occupancy rates

Most companies see positive ROI within 6-12 months, with compounding benefits in subsequent years as workspace strategies mature and employee adoption increases.

The future of office space optimization

Optimizing office space is no longer just about cost savings. Companies that rethink their real estate strategy will gain a competitive edge in 2025 and beyond.

By leveraging data-driven space planning, flexible workspaces, and resourceful office layouts, businesses can create high-performance work environments that benefit both employees and the bottom line.

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