Whether you're asking employees to come back into the office 5 days a week or running a hybrid schedule with no more than 2x a week office visits, effective space utilization will help you measure and understand how employees use your space.

Workplace leaders can gain valuable insights into space utilization, enabling them to identify underused areas, optimize layouts, and make informed, data-driven decisions. These strategies help reduce real estate costs while enhancing the overall workplace experience.

In this article, we'll cover:

• What is office space utilization?
• Why space utilization matters?
• What are the benefits of measuring office space utilization?
• What are the essential office space utilization metrics to track?
• Tips for maximizing space utilization
• How Gable can help you improve office space utilization

What is office space utilization?

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

Companies typically express it as a percentage showing how much available space is used. For instance, a 60% office space utilization rate means 60 out of 100 desks are in use.

3 benefits of measuring office space utilization

Reducing operational costs 

Office space utilization helps reduce expenses by putting every square foot to good use. By gathering data, you can decide to move to shared offices or find new uses for vacant space. 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 some dedicated workstations for employees who need them. When staff can use the right areas at the right times, they're more relaxed and finish more tasks.

Sustainability

Making the most of underused 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

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Essential space utilization metrics you need to track

Keeping tabs on office space utilization metrics ensures employee productivity and collaboration, and you can spend less or avoid cramped work areas if you have the right data.

Peak utilization

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

Check peak usage to see how much space is occupied during busy hours. You can identify high-demand areas like meeting rooms and stop logjams. If a room is always packed at certain times, you could set up a way to book it in advance or create other spaces that are similar.

• Formula: Utilization Rate = (Time Space is Occupied / Total Time Available) × 100

Average peak utilization

Average peak usage 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 usage, 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 shared spaces 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

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

Peak Occupancy  

Peak occupancy refers to the highest number of employees using an office space at any given time. Understanding peak occupancy helps companies determine whether their office setup efficiently meets employee needs or if adjustments are required.

• Formula: Peak Occupancy = (Maximum Number of Employees Present at the Same Time / Total Workspace Capacity) × 100  

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

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

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

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

Capacity and 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

Tips for maximizing 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 layouts

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 and create a productive work environment.

3. Leverage employee feedback

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

Your employees can point out problems and suggest ways to improve the quality of your physical space. Regular surveys, boxes for ideas, and small group discussions are good ways to get input.

When you use employee data to plan office 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, ensuring enough space for everyone.

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.

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In today’s workplace, efficient office space utilization is more important than ever. By tracking key usage metrics, you can make informed decisions to reduce costs and enhance productivity.

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