Right-sizing government offices: reducing real estate costs in a hybrid world

Government agencies are facing a space problem. Hybrid work policies have changed how employees use offices, but many agencies are still operating with office footprints designed for pre-pandemic work models. The result? Large portions of government real estate are sitting underutilized while budgets remain tight.

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

• CBRE Global Workplace Insights 2024

This shift presents both a challenge and an opportunity. The challenge is ensuring that office reductions do not disrupt operations or public services. The opportunity is using occupancy data to make informed decisions, ensuring that space is allocated efficiently without unnecessary costs.

Understanding how office space is actually used

Fewer employees in the office full-time

With hybrid work policies in place, many government offices now have more desks than employees using them. This leads to inefficient space use and higher operating costs.

To optimize office space, agencies should:

• Measure real occupancy rates instead of relying on assigned seating plans.
• Reconfigure workstations to support flexible seating and shared desks.
• Identify underused offices that could be consolidated or repurposed.

📌 Example: A state agency found that while every employee had an assigned desk, occupancy studies showed that desks were only used 40% of the time. By transitioning to a shared workspace model, they reduced office size by 25% while maintaining productivity.

Service centers vs. administrative offices

Not all government spaces function the same way. Administrative offices may see reduced in-person use, but public-facing service centers still require accessible, well-staffed spaces.

Agencies should:

• Differentiate between public service spaces and back-office functions to right-size office footprints appropriately.
• Consider co-locating services to reduce the number of small, underutilized buildings.
• Track foot traffic in public service areas to determine whether space needs adjustments.

📌 Example: A municipal government discovered that one of its satellite offices received less than 10% of its expected foot traffic. After a short-term occupancy study, they merged services with a nearby location, saving operational costs while maintaining accessibility.

Balancing efficiency with accessibility

Ensuring space reductions do not impact operations

Reducing office space comes with risks. If not planned carefully, it can lead to overcrowded remaining offices, inefficient workflows, and employee dissatisfaction.

To avoid this:

• Use short-term occupancy studies to test changes before making permanent reductions.
• Ensure remaining offices support collaboration and quiet work equally.
• Gather qualitative feedback from employees and visitors on how space is affecting productivity.

“Government agencies must balance cost savings with accessibility to ensure that reduced office footprints do not impact public service delivery.”

• CBRE Global Workplace Insights 2024

Q&A: Practical insights for government space planning

Q: How can agencies determine which offices to downsize?
A: By conducting short-term occupancy studies that measure actual space usage, including how often desks, meeting rooms, and service areas are used.

Q: What if office reductions lead to overcrowding?
A: Space reductions should be tested incrementally. Pilot programs can assess whether consolidation efforts are effective before making permanent changes.

Q: How often should government offices review space utilization?
A: Every 6-12 months, especially as hybrid policies evolve and staffing levels change.

Why occupancy data is critical for government space planning

Government agencies cannot afford to make real estate decisions based on assumptions. Without data, offices risk being either too large and costly or too small and inefficient.

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 space is used) and qualitative insights (how employees and visitors interact with that space).

By conducting snapshot occupancy studies, government agencies can:

• Identify underutilized offices and workspaces that could be consolidated.
• Ensure that public service areas meet actual demand rather than assumed foot traffic.
• Test space reductions before committing to long-term lease changes.

With the right data, agencies can reduce real estate costs while maintaining efficiency and accessibility.

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