The cost of empty desks: how CRE leaders can optimize office space & cut expenses

Many office buildings are half-empty. Employees are still working - just not always from the office. Yet many organizations continue to maintain expensive real estate portfolios designed for pre-pandemic attendance patterns.

“With office utilization stabilizing at 36% globally in 2024, CRE leaders must rethink how they manage space.”

• XY Sense Q1 2024 Report

Unused desks and oversized offices are more than just a waste of space. They represent operational costs that no longer align with business needs. For corporate real estate (CRE) leaders, the challenge is clear - reduce costs while ensuring employees have the right spaces when they do come in.

Measuring space efficiency beyond assigned seating

Why assigned desks are no longer the standard

Many companies still assign desks to employees based on pre-pandemic attendance patterns. But data shows that in many offices, desks sit empty for most of the week.

CRE teams need to:

• Measure actual desk usage rather than relying on outdated seating assignments.
• Transition to flexible seating arrangements where practical.
• Ensure meeting rooms and shared spaces match evolving collaboration needs.

📌 Example: A multinational firm conducted a two-week occupancy study and found that only 40% of assigned desks were used daily. They transitioned to a shared seating model, reducing total office space by 30% while maintaining productivity.

Balancing collaboration and focus spaces

While traditional desk usage has declined, collaboration and meeting spaces remain critical. Employees come to the office for teamwork, brainstorming, and client meetings, not just to sit at a desk.

CRE leaders should:

• Assess which spaces employees use most - desks, meeting rooms, or informal areas.
• Ensure that collaboration zones support different types of work (small team meetings, hybrid calls, focused work).
• Optimize conference room sizes based on actual usage patterns.

📌 Example: A financial services firm found that large conference rooms were often booked but rarely filled to capacity. By reconfiguring space into more small and mid-sized meeting rooms, they improved availability and cut wasted space.

Cost-saving strategies for CRE leaders

Consolidating underused office space

For companies with large real estate portfolios, consolidation can provide major cost savings. But closing offices or reducing space should be done strategically, using occupancy data to guide decisions.

To do this effectively:

• Identify locations with persistently low utilization.
• Consider shared satellite offices or co-working spaces instead of maintaining underused buildings.
• Pilot space reductions before making long-term lease changes.

“43% of companies plan to reduce office space by 30% or more in the next three years.”

• CBRE Global Workplace Insights 2024

Implementing better desk booking systems

Hot desking and hybrid seating arrangements can work, but only if employees can easily find and reserve space when needed.

Successful implementations include:

• Clear policies on desk sharing and reservations.
• Tracking which spaces employees prefer to use.
• Adjusting layouts to align with actual booking patterns.

📌 Example: A global tech company used occupancy data to refine its desk booking strategy. By aligning desk availability with employee attendance trends, they increased efficiency and reduced complaints about seating shortages.

Q&A: Practical insights for CRE leaders

Q: How can CRE leaders balance cost savings with employee experience?
A: Use data to optimize space, rather than making across-the-board cuts. Employees still need well-designed spaces when they come in, so reductions should focus on underused areas rather than essential workspaces.

Q: What if we reduce office space but later find we need more?
A: Pilot reductions first. Short-term occupancy studies can help test changes before making permanent real estate decisions. Flexible leasing options can also provide a buffer if space needs shift.

Q: How often should companies reassess space utilization?
A: Ideally, every 6-12 months. As hybrid work evolves, so do employee attendance patterns. Periodic occupancy studies help ensure space aligns with real needs.

Why occupancy data is critical for CRE cost reduction

Reducing real estate costs without disrupting productivity requires more than just downsizing offices. CRE teams need accurate, up-to-date data on how employees are actually using space.

This is where Vantage Space provides value. Unlike long-term sensor-based tracking, Vantage Space offers quick, human-led occupancy studies that provide both quantitative data (how spaces are used) and qualitative insights (how employees interact with those spaces).

By conducting snapshot occupancy studies, CRE teams can:

• Identify underused office space before committing to costly lease decisions.
• Ensure that space reductions align with actual employee behavior.
• Test new workspace strategies and adjust based on real data.

With the right insights, companies can cut costs while maintaining an office environment that supports employee needs.

Looking to optimize your office footprint? Start an occupancy study with Vantage Space today.