Before the pandemic, office space planning was based on a supply and demand model where the supply in question was physical space for employees, and the demand was centered around headcount.
Post-pandemic, office space planning is integral to return-to-office strategies and for enabling team collaboration with teams that work in increasingly hybrid environments.
Because of the changes to a more hybrid workforce, office space planners can work with the company’s existing real estate portfolio and envision redesigned spaces that can work for years to come, instead of having to expand space every time headcount is set to grow. These flexible workplace strategies allow for companies to ensure on-site, remote, and hybrid employees are all actively engaged.
As the occupancy rate of the workplace increases, the cost per occupant decreases and the ROI of your workplace improves. This means that as more employees come into the office, the original space won’t need to be expanded as many employees will be hired remotely, or will only come in occasionally.
A full understanding of true office space utilization is key to understanding the best way to plan workplaces.
Low occupancy creates the false impression that you have enough space to accommodate the needs of your employees.
Because fewer people are in the office, there are fewer demands. Office space, desks, chairs and other amenities are available in surplus, creating the sense that everything’s fine.
This is far from the reality, and results in overspending on real estate and low employee satisfaction in some locations due to insufficient space availability.
To plan your office spaces effectively, you must conduct demand planning and respond to space requests and headcount growth with data-driven plans.
A common challenge when planning office spaces is the inability to reconcile what employees and department managers say they want, versus what they actually need. This leads to spaces that don't actually serve the needs of the occupants and are underutilized.
A sound office space forecasting model and understanding how your users actually use space allows you to increase space usage while providing an improved employee experience.
Four experiments you can start doing now to improve your office space planning strategy.
Click each experiment to expand.
Similar to our right-sizing experiments, if you have six floors of real estate which are each experiencing 20% occupancy, you can "close out" four of the floors and only keep two floors accessible to your employees.
The intention of this experiment is to increase the utilization of space on these two floors by densifying your occupancy. This can result in an increase in utilization on these two floors from 20% to 60%.
Although you will continue to pay the lease for those four floors at this time, you can decrease the costs of operations, cleaning and other amenities during this time period.
Set a start date for your experiment and track the real costs of the space (or historical costs for 6 months prior to changes) and track 6 months after changes to determine your overall savings. This savings can be returned to the company or reinvested in further experiments.
Run experiments to measure office space utilization when space is consolidated, such as seating certain departments on the same floor.
For instance, if you are consolidating your space from six floors down to two floors, and are placing all the design teams on one floor and the finance teams on another floor, you can gather data on how much more likely employees are to come to the office once they know that the workplaces they will be sitting in are likely to have a lot more of their coworkers and increased opportunities for collaboration.
Many companies have offices in multiple locations. Rather than maintaining five offices that are each experiencing low utilization, you can run an experiment by consolidating the satellite offices and only giving employees access to the offices of highest quality— centrally located, the most updated tech stacks and amenities, and the most popular workplaces.
This can help you understand if you even need multiple offices, and whether the quality of your spaces is impacting employees’ inclination to come into the office.
Download a PDF version of the guide to running experiments in a low occupancy world to walk you through experiment design and how to produce a business case.
It includes a template to run your own experiment.
Go to guide to running experiments in a low occupancy world.