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Utilization Rate Calculation: Get the Most Out of Your Space

An office that's not being used efficiently can waste valuable space, money, and energy. Learn how to improve the space utilization rate for your office.

Filip Dimkovski - Writer for POC System
By Filip Dimkovski
Nevena Radulović - Editor for POC System
Edited by Nevena Radulović

Published March 1, 2023.

Space utilization is the process of measuring how efficiently an organization uses its available workspace. You can calculate your space utilization rate using this formula:

Space utilization rate =

Total workspace capacity / Number of employees who use it

The average space utilization rate is around 60–70%. This shows you if you need additional office space or have the capacity to downsize to increase efficiency and save costs.

A poor space utilization rate can negatively impact your organization, resulting in higher costs because you're not effectively maximizing your office space as a resource. It can also affect employee satisfaction by making them feel cramped or uncomfortable, leading to reduced productivity and collaboration.

How to Make the Most of Your Office Space

To make the most of your workspace, you need to consider how these factors impact utilization:

Office Layout

Your layout can influence the physical size of your office and therefore your real estate cost. By understanding your utilization rate, you can determine whether you're paying for space you're not using or if you can optimize your current space and improve its usage. For example, you can compare open vs closed office spaces to determine which layout would suit your permanent desks and various collaborative spaces best.

■ Knowing your density can help determine the right amount of office space per employee

Work Models

Hybrid work models and agile workplaces are also useful in making the most out of your office space because they're conducive to flexible working arrangements. For example, you can downsize your office space if your full workforce no longer comes into the office and put a hot desking system in place. Also, technological streamlining and automation can help free up valuable space, particularly when it comes to resource management and tool organization.

■ Use these additional space utilization metrics to measure your space usage

Optimize Your Space Utilization Rate With the Right Software

An optimal space utilization rate ensures that you're effectively using your office space and its related resources, including making sure it aligns with your employees' needs. By considering your office layout, streamlining processes, and using valuable software solutions, you can improve your space utilization rate and get the most out of your office space.

This is where a solution like POC's space management software is particularly helpful. With its easy-to-use features, POC's solution provides valuable insights based on factual data, helping you understand your current space usage and identify potential areas you can optimize.

■ Want to try it for yourself? Book a demo