Space Utilization vs Space Occupancy: The Key to Smarter, Cost-Effective Offices

Knowing the difference between space utilization (how efficiently and effectively a space is used over time) and space occupancy (the number of people physically present in a space at a given time) is essential for cutting costs, boosting performance, and creating a better employee experience.

In the past, if a desk was assigned, it was probably being used. But in the modern workplace, that should no longer be the assumption.

CBRE found that office occupancy allocations have risen by ~20% since 2020 and have stabilized between roughly 51% and 60% of pre-pandemic levels (Cushman & Wakefield). Yet space utilization remains under 40%. That means the majority of office square footage is sitting idle, quietly draining budget and missing opportunities to connect teams.

The fix starts with understanding the crucial difference between occupancy and utilization. This guide will show you how to measure both, why leading CRE firms now prioritize utilization over occupancy, and how a platform like Skedda can help you bridge the gap between your plan and your reality.

What Is Space Utilization?

Space utilization measures how often and how intensively spaces are actually used. It is usually tracked in percentages. For example, if a meeting room is booked for six hours but only occupied for two, its utilization rate is low. 

JLL’s tenth annual Global Occupancy Planning Benchmark Report (2024/25) emphasizes that space utilization data has become the single most important metric for corporate real estate. CBRE also notes that utilization has become a critical indicator of workplace performance in an era of hybrid work, eclipsing metrics such as cost per seat or density.

Why it matters: Utilization is all about performance. It tells you if your space is actually working for the people who use it, or if there’s a disconnect between how you’ve set things up and how folks really work day-to-day. 

With Skedda’s QR code check-ins, for instance, you can confirm whether a booking for a specific space was actually used, helping you eliminate ghost bookings and get an accurate picture of utilization. In Skedda’s Insights dashboard, you can see the space utilization percentage, which indicates the fraction of a space’s available time that was actually used for something valuable.

For more strategies, see our post on five ways to optimize your office using utilization insights.

What Is Space Occupancy?

Space occupancy refers to the number of people in the space at a given time — a simple headcount of physical presence.

Occupancy can be expressed as a percentage (e.g., a 25-person conference room with 15 people inside = 60% occupancy) or as a raw number (e.g., “15 people in this meeting room”). It answers the basic question: How many people are here right now?

Why it matters: This metric helps monitor attendance and capacity. However, it doesn’t capture whether the space is being used effectively. Cushman & Wakefield’s latest research shows that physical attendance has stabilized at about 51–60% of pre-pandemic levels. Yet, average space utilization remains under 40%. Even when occupancy looks healthy, much of the space can still be underutilized.

Skedda’s Wifi-based Occupancy Tracking makes it easier to track and manage occupancy patterns, ensuring you know exactly how many people are in the office at any given time.

Difference Between Space Utilization Rate and Occupancy Rate

Occupancy refers to the number of people in a space at a given time — a simple headcount of physical presence. Utilization looks deeper, asking how effectively that space is being used over time. You need both metrics for accurate planning.

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Key takeaway: Occupancy indicates the number of people present, while utilization measures the effectiveness of the space in serving its intended purpose. However, high occupancy doesn’t guarantee high utilization.

How to Measure Office Space Utilization and Occupancy

Occupancy is a simple headcount of the number of people present in a space at a given time, while utilization requires dynamic data to understand how effectively the space is being used over time.

Measuring Space Occupancy

The best practice is to keep an up-to-date seating plan and maintain accurate headcount data. Occupancy can be expressed as a percentage or as a raw number. For instance, you can have 40 out of 50 people in the office at noon, giving you a space occupancy of 80%.

In a traditional fixed-desk setup where employees go to the office five days a week, this is straightforward. However, in flexible working environments, the measurement can get a little trickier. You’ll need a way to track if people are actually in the office. Badge swipes, seat sensors, and Wifi-based occupancy tracking are some common ways organizations use to track occupancy. 

Of course, you could measure occupancy by comparing reservations to actual check-ins. This is unreliable, though, because some people might be on site but not check in, while others may just check in but be at home.

Measuring Space Utilization

The best practice is to track real-time presence data from multiple sources, such as sensors, Wifi logins, or access control badge swipes, and cross-check this with booking information. 

Using a space booking system like Skedda that provides reporting and insights into space use is extremely useful. A booking system allows you to set the hours of availability for spaces that people can use, and then compares how often these resources are actually reserved and checked in. By recording the amount of time within the available hours those spaces are actually booked, you get a more accurate reading of your space utilization.

In hot desking or activity-based working setups, this becomes especially important. Without assigned desks, you need to know exactly which resources and spaces were used, for how long, and for what type of activity. For instance, a meeting room booked for six hours but used for two has 100% occupancy during those two hours, but only 33% utilization overall. Or, sensors might reveal that of 30 reserved desks, only 18 were actively used for more than an hour.

No-shows and “placeholder bookings” can make utilization appear higher than it really is. This could be a desk reserved all week but never touched. Having a booking system with an auto-release function, which automatically cancels a booking if someone doesn’t check in within a specific time window, can prevent this kind of skewed utilization.

Skedda’s QR code check-in ensures actual presence is confirmed, providing reliable utilization data. You can then filter that data using Skedda’s Space Attributes, letting you break down utilization patterns by specific teams or space types. 

Benefits of Tracking Both in the Modern Workplace

Combining occupancy and utilization tracking enables cost savings, operational efficiency, and better employee experiences.

• Financial: Say you discover that an entire wing of 20 desks averages less than 20% usage over a quarter. That insight could lead you to downsize the space, saving thousands in annual rent, or repurpose it into revenue-generating areas, such as client meeting suites.
• Operational: A utilization study might reveal that small huddle rooms are booked solid while larger boardrooms sit idle. In response, you could split a 20-seat conference room into two smaller collaboration spaces, instantly meeting demand without adding square footage.
• Experience: Imagine employees arriving on their in-office days only to find every focus pod occupied, while entire rows of open-plan desks are empty. Tracking both occupancy and utilization can help you redistribute space so quiet areas and collaborative zones are balanced, avoiding both frustration and wasted real estate.

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CBRE notes that utilization has overtaken cost per seat as a core KPI because it reflects whether your office setup is genuinely effective in supporting work. Despite smaller office portfolios post-pandemic, about 64% of global office space remains underutilized, which is a top concern for corporate real estate leaders.

Learn more in our article 3 Ways To Optimize Office Space for Hybrid Work.

Occupancy vs Utilization Metrics for Facility Managers

Facility managers rely on occupancy data for big-picture, long-term decisions, such as determining whether to renew a lease or consolidate floors. They rely on utilization data for making daily choices, such as reallocating meeting rooms or adjusting cleaning schedules. Ignoring either can lead to costly mistakes, such as committing to a 10-year lease on underutilized space or leaving employees scrambling for collaboration areas.

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JLL warns that while most organizations collect utilization data, few are turning it into actionable intelligence — a missed opportunity in a volatile workplace landscape. This disconnect underscores the need for more effective tools to translate utilization data into actionable insights for dynamic space planning. It also calls for facilities leaders who can connect usage patterns with employee experience and broader business outcomes, translating numbers into narratives that executives can act on.

“You must humanize the data.” – James Duenas, Head of Global Workspaces and Facilities at Intermountain Health

Humanizing the data: High occupancy allocation but low utilization could indicate too many desks in a low-demand area, or a mismatch between space type and work style:

• On Thursdays, your office may be experiencing 95% occupancy. However, private focus rooms are only utilized 19% of their available time, while meeting rooms are 100% utilized. This could indicate that people tend to come in on Thursdays for collaboration, and that you may need to make more meeting rooms and fewer focus rooms available on Thursdays. 
• One hundred percent of your sales team may come into the office on Monday, but only 2% of them use the phone booths. This could indicate that either your phone booths lack the necessary amenities or that they are an unnecessary expense, as your team prefers taking calls at their desks. 
• Your office occupancy is at 85%, but your team’s utilization of the third-floor amenity rooms (i.e., nap room, golf simulator, kitchen) from 3 to 5 pm is at 2%. Consider limiting the hours of availability for amenities on this floor and turning off HVAC and lighting to save on facilities and upkeep costs.

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Skedda’s Workplace Intelligence reporting makes these mismatches obvious, so you can fix them before they cost you. For tips on turning data into informed decisions, see our post on effectively utilizing data.

How Utilization Data Improves Office Space Planning

Utilization data turns static plans into adaptive workplaces tailored to hybrid patterns (i.e., alternating team schedules, anchor days, and activity-based work zones) and employee needs (i.e., quiet focus areas, drop-in desks for part-time commuters, and collaboration spaces for cross-functional projects). Alexandra Selezneva, Senior Director at The Coca-Cola Company, described the process of using this data to inform modern workplace decisions as “data‑driven flexibility.”

Benefits include:

• Right-sizing: Avoid paying for space you don’t use. For example, realizing that a 5,000-square-foot floor consistently has less than 25% utilization and consolidating it into one floor to cut rent costs in half.
• Hybrid optimization: Identify peak days and rebalance schedules, such as adjusting certain teams’ anchor days when data indicates that Wednesdays are at 120% capacity, while Mondays average only 40%.
• Experience-first design: Invest in spaces and amenities that employees actually want — such as converting a rarely used storage room into a wellness lounge, after surveys and utilization data reveal a demand for quiet recharge spaces.

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Success Story: The administrative team at Trent & Dove leveraged space utilization insights to inform decisions about their office space. The organization was able to determine that a conference room they had considered gutting was, in fact, regularly used, and much more so than the team had believed from anecdotal evidence. Thus, the team scrapped the plan to eliminate the room for the better.

Learn more in our post on designing hybrid offices with utilization data.

Wrapping It Up: Where Data Meets Design

In the modern workplace, occupancy shows how many people are present in an office at a given time, while utilization shows how effectively and efficiently space is being used. Combining both gives organizations the smartest, most cost-effective workplaces.

Occupancy is a simple headcount of physical presence. Utilization looks beyond that snapshot, asking how often spaces are being used, for how long, and by how many people. Together, these metrics reveal both the demand and the performance of your spaces.

The best workplace strategies track both, compare them, and use the combined insight to make better design, scheduling, and investment decisions.

Skedda helps you capture accurate occupancy and utilization data, then turn that data into workplace designs and policies that save money and improve the employee experience. Book a demo to learn more.