Measuring What Matters

• Companies implementing proper occupancy tracking reduce real estate costs by an average of 35 percent within 18 months (according to CBRE's 2024 Workplace Intelligence report).

• 83 percent of C-suite executives say hybrid working is playing a crucial role in their cost-saving strategies (IWG)

• 5 percent is the weekly occupancy rate in 10 U.S. cities as analyzed by Kastle Systems (first week of July 2025).

• 68 percent of companies surveyed by JLL have the improvement of space data accuracy as an objective for 2025.

 

When companies master occupancy measurement, they unlock significant cost savings and employee satisfaction improvements. Here is how to approach it systematically.

Dealing with workspace intelligence

The workplace landscape shifted permanently after 2020, forcing organizations to rethink space allocation entirely.

In its Global Occupancy Planning Benchmark Report 2025, JLL analyzed 99 organizations managing 745 million square feet. Here are the key findings from this research:

• Portfolio optimization now drives corporate real estate decisions as companies transition from simply collecting occupancy data to making informed, business-aligned workspace choices.

• Advanced data analytics creates competitive differentiation in workspace management, yet there is a gap: organizations with robust analytics systems substantially outperform those relying on basic measurement approaches.

• Office utilization continues to rise globally; but, at the same time, businesses are raising utilization targets to right size portfolios and manage costs.

• Hybrid work is maturing into systematic programs featuring consistent attendance patterns, hybrid policy frameworks and greater technology investment.

• Individual workspaces are moving toward smaller, standardized sizes with increased desk sharing ratios and higher density standards.

• Dual-purpose spaces are blending collaborative and focus work capabilities within the same spaces, while organizations prioritize employee well-being through dedicated wellness zones and culture-building areas.

Companies getting this right are not just saving money — they are creating environments that employees want to use.

The hidden costs of occupancy

Total cost of occupancy extends far beyond base rent, which can range between US$10 and US$30 per square foot. Here are some other costs that matter:

• Taxes and common area maintenance fees,

• Insurance premiums and management fees,

• Utilities (may be separately metered or shared),

• Repairs and maintenance, mechanical system failures requiring replacement,

• Administrative fees,

• Building age impact,

  • For new buildings: lower repair costs, efficient systems, uncertain future expenses, limited historical data.

  • For old buildings: higher maintenance, predictable expense patterns, potential for major system replacements.

• Tenant improvements and fit-out expenses,

• Moving allowances and low voltage installations,

• Unexpected capital projects passed to tenants.

The whole financial impact could go 5-20 percent above budgeted amounts.

Think about this: 50.5 percent is the weekly occupancy rate in 10 U.S. cities as analyzed by Kastle Systems. Now correlate this with the rent per square foot, as well as the other fixed or variable office costs.

This screams opportunity for savings, doesn’t it?

The right metrics

Traditional space measurement relied solely on cost per square foot — dividing total workspace by occupant count. This simplistic approach offered only one level: increasing or decreasing space allocation per employee. Modern occupancy metrics use a multivariable approach that looks at how space is being used, when it is being used, space types and their usage patterns, and more.

This evolution prioritizes employee performance alongside cost efficiency, moving from basic square-footage optimization to strategic workspace effectiveness. The result is agile work environments that successfully balance financial objectives with employee satisfaction.

The benefits include:

• Accommodation of hybrid work scheduling

• Responsiveness to volatile real estate markets

• Preservation of company culture

• Data-driven space allocation decisions

By shifting focus from simple space reduction to intelligent space optimization, organizations create workplaces that enhance both financial performance and employee experience, avoiding the costly mistake of prioritizing real estate savings over workforce productivity.

While 78 percent of organizations collect some form of occupancy data, only 34 percent feel confident in their measurement capabilities. This gap represents a massive opportunity, as companies with robust measurement systems report 45 percent higher employee satisfaction scores and 28 percent lower per-employee real estate costs.

Here are the essential occupancy metrics every organization should track:

1. Utilization rate: The highest percentage of seats occupied during the busiest periods, typically measured during core collaboration hours.
2. Occupancy rate: Percent of desks allocated for use via individual or group assignments.
3. Vacancy rate: the inverse of occupancy rate, showing the unoccupied seats.
4. Cost per seat: Total facility expenses divided by actual seat usage, revealing the true economics of workspace investment.
5. Density: The ratio between the total office area and the actual headcount.
6. Space function ratio: Ratio of various space types and functions such as “me” vs. “we” spaces and open vs. enclosed spaces.

Here is how these metrics are valued more inside companies:

Now, how do organizations capture this data effectively?

Multiple tracking methods are emerging:

• Sensor networks provide continuous, automated monitoring through IoT devices that detect presence without privacy concerns.

• Mobile app check-ins give employees control while generating valuable usage data and enabling social coordination.

• Wi-Fi analytics leverage existing infrastructure to track device connections and movement patterns.

• Desk booking systems create intentional usage data while enabling employees to secure specific workspace types. They can provide several critical capabilities:

• Predictive availability shows employees when their preferred workspace types will be available, enabling better planning and reducing frustration.

• Social coordination helps team members book adjacent spaces or find colleagues, supporting collaboration while maintaining flexibility.

• Usage analytics provide administrators with detailed insights into space performance, popular areas, and optimization opportunities.

When asked “What technology is used to create transparency and predictability around when and where hybrid employees are in the office,” the second most-common response was “no technology," which rose to 39 percent in 2024 (CBRE data). On the other hand, the rise in adoption of workspace-reservation systems proves the need for data-driven management of office environments.

Leading organizations use hybrid measurement approaches, combining multiple data sources to create comprehensive occupancy pictures. The most effective systems balance accuracy with employee privacy, providing insights without creating surveillance concerns.

Calculation methodologies vary significantly. Some organizations focus on:

• Time-based averages (measuring hourly utilization throughout the day),

• Event-based metrics (tracking specific activities and their space requirements).

• Dynamic calculations that adjust for seasonal patterns, project cycles and team-specific work rhythms.

After implementing measurement systems, according to JLL, 61 percent of organizations redesigned their space allocation, 48 percent modified their hybrid work policies, 44 percent invested in new workplace technologies, and 29 percent relocated to smaller facilities. The most successful interventions combined multiple strategies rather than relying on single solutions.

Individual offices have stabilized at 100-149 sq. ft., representing 64 percent of corporate portfolios, while larger 224 sq. ft. offices declined dramatically from 16 percent to 4 percent. Workstation sizes standardized at 35-49 sq. ft. (64 percent of workspaces), becoming the 2022 benchmark.

Office amenities are experiencing a renaissance, with allocation increasing from 11 percent to 17 percent (2021-2024). Modern workspaces now feature restaurants, cafes, game rooms, town halls and wellness areas — transforming offices from sterile environments into experiential destinations. Support spaces stabilized at 22 percent due to paperless initiatives. All this data comes via CBRE.

This evolution reflects a fundamental shift: offices are becoming culture-building destinations designed to attract and retain hybrid workforces through engaging, community-focused experiences rather than traditional work-only environments.

As per CBRE data, 48 percent of companies are using Tableau or PowerBI for space utilization analysis.

Investment in technology & facility modifications

Organizations are investing heavily in workplace technology, with 82 percent planning to increase their workplace tech budgets over the next two years. The most impactful investments focus on creating seamless experiences that make office attendance valuable rather than mandatory.

Investment priorities include:

• Booking & reservation platforms enable employees to secure appropriate workspace types while generating valuable usage data for space planning. Companies with effective booking systems report 23 percent higher space utilization and 31 percent better employee satisfaction scores compared to those managing shared spaces manually.

• Collaboration technology upgrades ensure remote and in-office employees can work together effectively, making office attendance more productive.

• Environmental controls (47 percent implementation rate) allow personalized workspace conditions, improving comfort and productivity in shared environments.

• Wayfinding & navigation systems (35 percent implementation rate) help employees locate colleagues, available spaces and appropriate work environments in dynamic office layouts.

To support higher utilization targets, organizations are implementing more aggressive space sharing strategies. The average desk-to-person ratio is moving from 1.2:1 to 1.5:1, while total square footage per employee is decreasing from 185 to 145 square feet. These changes require sophisticated coordination systems to avoid conflicts and maintain employee satisfaction.

Space design is evolving to support multiple work modes. Companies are creating neighborhoods with diverse workspace options rather than uniform desk arrangements. The most successful designs include quiet focus areas, collaborative zones, social spaces and technology-enabled meeting environments that serve different work activities throughout the day.

Final thoughts

Traditional office models featuring 100 percent assigned desks are rapidly decreasing. CBRE Workplace Project Benchmarking reveals a dramatic shift in workplace allocation strategies:

• Assigned seating dropped from 83 percent to 55 percent of companies.

• Hybrid/desk-sharing models surged from 12 percent to 36 percent.

• Unallocated hoteling and visitor seats increased from 5 percent to 9 percent.

This transformation reflects organizations' growing embrace of flexibility and activity-based work environments. The 28-percentage-point decline in assigned seating represents one of the most significant workplace strategy shifts in recent years, driven by hybrid work adoption and the need for more efficient space utilization.

The rise in desk-sharing arrangements — tripling from 12 percent to 36 percent — demonstrates companies' commitment to optimizing real estate investments while accommodating diverse work patterns. Meanwhile, the growth in hoteling arrangements signals organizations' preparation for fluctuating occupancy levels and visitor accommodation needs.

The organizations succeeding in hybrid work environments treat occupancy measurement as strategic capability rather than administrative tasks. They invest in comprehensive data collection, sophisticated analysis and continuous optimization to create workspace experiences that employees value.

The financial impact is substantial. Companies with mature occupancy measurement programs report average cost savings of 32 percent while maintaining or improving employee satisfaction. They are not just reducing expenses — they are creating more effective work environments that support both individual productivity and team collaboration.

The future belongs to organizations that master the balance between efficiency and experience, using occupancy data to create workplaces that people choose to use rather than spaces they are required to occupy.