Did you know that:
- Through office downsizing and adopting hybrid working models, companies can expect real estate cost savings up to 50% (says IWG CEO Mark Dixon)?
- The global office utilization rate in 2025 is 54% (according to JLL)?
- The optimization of space utilization is the primary goal of hybrid programs, cited by 81% of organizations (up from 77% in 2024 and 64% in 2023)?
Now, when it comes to space optimization, let’s see how companies can approach it, and which are the occupancy metrics that need monitoring.
Strategic Occupancy Planning Management
As organizations navigate the latest workplace transformations, strategic occupancy planning and management became more important. JLL’s 10-year anniversary Global Occupancy Planning Benchmark (2025) report analyzes 99 organizations managing 745 million square feet globally. The key finding reveals organizations have evolved from basic hybrid work implementation to sophisticated portfolio optimization, using advanced data analytics and strategic design to balance employee experience, space utilization, and financial performance.
Here are the key insights from JLL’s report on occupancy planning:
- Portfolio optimization has emerged as the top corporate real estate priority, with organizations moving beyond data collection to strategic space decision-making.
- Advanced data analytics are critical for workspace management, though many organizations still struggle with data capabilities while those with sophisticated systems gain significant advantages.
- Office utilization continues to rise globally, but organizations are simultaneously raising utilization targets to right size portfolios and manage costs.
- Hybrid work is becoming more structured with predictable attendance patterns, expanded governance systems, and greater technology investment.
- Individual workspaces are shifting toward smaller, standardized sizes with increased desk sharing ratios and higher density standards.
- Dual-purpose spaces are being designed to support both collaborative interaction and focused individual work, with growing emphasis on wellness and cultural areas. We’ve talked about this issue and the value of variety in our interview with Peggie Rothe from Leesman.
Now, let’s dig deeper.
The Occupancy Metrics Companies Need to Be Aware of
While organizations with advanced data insights gain significant advantages in space allocation and portfolio optimization, many still struggle with effective data collection. Only 52% rate their data capability as excellent (7%) or good (45%), with 28% reporting average capability and 20% having poor or no capability at all. This gap is a clear opportunity for improvement, as investing in data management tech is essential for utilization measurement and optimization, cutting costs, and improving employee experience.
Now, let’s see which occupancy metrics are helpful here:
Utilization rate: The percentage of time individual seats are occupied during designated work periods, such as business days or shifts.
Occupancy rate: The percentage of seats that have been assigned to individuals or groups (neighborhoods) for regular use.
Cost per seat: The operational expenses associated with maintaining each individual seat or workstation.
Space function ratio: The proportional balance between different workspace types, such as individual versus collaborative spaces, or open versus private enclosed areas.
Density: An efficiency metric calculated by dividing the total office square footage by either total headcount or the number of available seats.
Vacancy rate: The percentage of seats intentionally left unassigned to provide flexibility for space changes and accommodate future organizational growth.
How do businesses track this data?
Well, there ae several methods:
- Badge swipe data (90%) is still the most common and cost-effective method
- Reservation systems (49%) are growing in popularity as organizations implement more apps for booking desks, or shared spaces.
- Visual observations (41%) are still being used despite the growth of automated tracking methods.
- Space sensors use various technologies to detect the presence of people in a space, such as Passive Infrared (PIR), ultrasonic, and video image processing.
Companies use various calculation methods for occupancy metrics. The most common methods include averaging daily peaks (52%), weekly peaks (47%), specific weekdays (46%), and mandatory in-office days (20%), each offeringu nique insights into attendance patterns and space usage.
According to JLL, after analyzing this data, 55% of businesses reduced their overall footprint, 42% imposed office attendance mandates, 38% did space design changes, 34% implemented workplace experience programs, and 9% offered attendance incentives. Office attendance mandates are considered the most effective approach, with 61% reporting positive results. On one hand office utilization improves, on the other hand, these companies are missing the opportunity to downsize and save money. They might also end up with more frustrated employees.
As mentioned in the beginning, the main goal of implementing hybrid programs is to optimize space. Reducing portfolio costs and carbon footprint are also among the goals. This explains the statistics presented earlier that 55% of businesses reduced their overall footprint after usage measurement.
Source: JLL
When talking about office mandates, 49% of surveyed companies are now requiring fixed in-office days (up from 27% in 2023), while fully flexible approaches declined from 41% to 15%. This structured approach creates predictable attendance patterns, fosters collaboration, and addresses midweek occupancy challenges.
Source: JLL
Organizations are creating support systems for hybrid programs, with 70% setting up hybrid occupancy policies (up from 51% in 2024) and 38% implementing change management programs (up from 33%). Corporate real estate teams lead hybrid planning support (86%), followed by human resources (77%) and IT (55%), with legal (26%) and finance (22%) in supporting roles. We’re talking cross-functional collaboration.
Investment in technology and facility modifications to support hybrid working is increasing, with the most common improvements being reservation systems (58%), collaboration spaces (56%), and minor facility modifications (50%). Organizations are also increasingly changing space buildout ratios (44% versus 36% in 2024) and implementing major facility reconfigurations such as hard wall changes (30% versus 17% in 2024).
To meet rising utilization targets, organizations are planning to increase seat sharing ratios from the current average of 1.1 to 1.3 people per seat, while improving density metrics from 165 to 132 square feet per person (or 164 to 151 square feet per seat). More aggressive strategies like 100% agile seating could further enhance flexibility and reduce per-employee occupancy costs.
Source: JLL
While maximizing space utilization stays a priority, it’s important for organizations to create high-performing environments that boost productivity and employee experience. The office now serves a dual role in hybrid environments—functioning as both a collaboration hub and a space for focused work.
An effective mix of these space functions supports an engaged and productive workforce. Leesman research (the “Value of Variety” report) showed that that unassigned workplaces with a good variety of work settings achieve the highest employee experience scores, outperforming both assigned workplaces and those with unassigned strategies with poor variety.
“A workplace that only offers traditional desk setups and a few meeting rooms may not be sufficient, while a workplace with a diverse range of spaces, including quiet zones, collaborative areas, and social hubs, can better support employee productivity and well-being.”
Peggie Rothe – Leesman’s Chief Insights & Research Officer
JLL’s report shows that organizations are expanding collaboration spaces (35%) and small huddle rooms (22%) to support diverse teamwork modes, while adding phone rooms (35%) and focus rooms (28%) to address concentrated work needs.
To support employee wellness, they’re incorporating wellness areas (20%), mothers’ rooms (20%), and prayer/meditation spaces (14%), alongside ergonomic furniture like sit-to-stand desks (now standard in 77% of new buildouts). The rise in workplace health and cultural spaces reflects organizations’ need to provide onsite amenities that compete with home office benefits.
Reservation Systems: What About Them?
As mentioned earlier:
- Unassigned workplaces (shared seating) with a good variety of work settings achieve the highest employee experience scores.
- Companies are planning to increase seat sharing ratios from the current average of 1.1 to 1.3 people per seat.
- Investment in technology that supports hybrid working is growing, with the most common improvements being reservation systems (58%).
When dealing with a shared seating environment, it means that companies will use some sort of booking system allowing employees to share desks.
Some companies do it manually, but this is a method prone to errors and lots of complaints.
Others are buying desk bookings apps (e.g. Tidaro).
Now, here are the benefits of a desk booking app:
- Self-service booking allows employees to reserve desks independently without requiring office manager help.
- Visibility into office presence enables users to see who will be in the office on any given day.
- Social coordination helps employees find colleagues and book adjacent desks to ease collaboration.
- Task-appropriate workspace selection allows employees to choose workstations suited to their daily responsibilities.
- Zone management enables administrators to efficiently assign employees to specific office areas.
- Analytics reports help admins and office managers understand the levels of occupancy in the office, while also helping them calculate vacancy metrics and people/seat.
For example, Tidaro has reports that help tenants:
- What percent of your office is actually used
- What parts of your office and car park are used most often
- What areas of your office remain empty
- Identify what are the most popular days for office visits using the attendance reports and set them as meeting days.
- Check what types of desks employees like the most and introduce more workstations like that.
- Observe weekly office visits to understand your employees’ hybrid working habits.
Also, because Tidaro also has modules for room booking and parking spots booking, it can help companies:
- Increase the car park availability by up to 30%.
- Use 100% of your parking spaces.
- See how many of your parking spaces are used and cut costs generated by your lot.
- See how many employees commute to work by car and seek ways to encourage more ecological habits.
- Avoid ghost meetings or double-booked meeting rooms.
- Find out which rooms are most in demand, which are occupied at certain times, and how long meetings last.
- Get the data they needs to properly calculate occupancy metrics.
Do you want to see for yourself?
Try Tidaro for free here.
Final Thoughts
Many organizations have invested in technology to support physical space adaptation for hybrid programs, with 44% implementing IT modifications for hybrid operations and 40% investing in upgraded conference room technology.
Continued investment in integrated and enhanced hybrid work technology will remain a corporate real estate leadership priority. JLL’s Global Real Estate Technology Survey 2023 found that 85% of occupiers planned technology budget increases within three years, while 91% expressed willingness to pay premiums for technology-enabled spaces. Shared seating (hot desking) continues to expand. Over the past five to ten years, JLL has seen growing trends toward seat sharing and flexible workspaces, driven by technology-enabled adaptability, adjustable work policies, and space efficiency goals.
And yes, there are some downsides to businesses choosing to downsize their offices. One of the problems is that the real estate market is struggling.
Hertz Properties Group, a major downtown office proprietor across the United States, confronts serious financial obstacles. The company is facing raised vacancy percentages, diminished leasing transactions, escalating expenses, and deteriorating valuations.
Jose Maria Barrero, a professor at Mexico’s Instituto Tecnologico Autonomo and WFH Research group member, emphasized the adverse effects on municipal sales tax collections resulting from decreased spending in urban centers. Reduced commuter volumes seem to directly correlate with diminished city revenues.
Research from 2023 proved that hybrid scheduling policies cost New York City billions annually. Stanford University economist Nicholas Bloom’s WFH Research group found that Manhattan-based employees reduced their spending by $12.4 billion yearly compared to pre-pandemic expenditure patterns.
This context explains initiatives such as the Canadian Government’s directive mandating remote employees return to office settings beginning mid-September 2024.
It’s a period that requires a lot of change and adaptation. The status quo is being challenged.