Office spaces are changing. The U.S. office building vacancy rates are at an all-time high, even years after COVID-19 upended work dynamics. Office space totaling 902 million square feet stands empty—much of that a result of the rise of hybrid work and the continued push by employees for flexible working arrangements. How organizations manage their office space needs to change with the modern workplace.
This guide provides you with everything you need to know about office space management, including what it is, the benefits and challenges, factors to consider, strategies for effective space management, the latest trends, and the future of space management. Let’s dive in.
Space management is the process of optimizing the use of physical space. It is a strategic goal to maximize functionality, comfort, and productivity while minimizing waste and inefficiencies. In the modern workplace, effective space management for many organizations means implementing flexible spaces that fit employees’ purpose for going into the office. For example, it may look like finding the right balance of collaborative and quiet space in the face of changing working patterns and office footprint changes.
Space management involves the planning, designing, and ongoing maintenance of the given workspace to maximize its potential. Here’s a space management process to follow:
Understand the requirements of the space, such as the number of occupants, the type of activities that will take place, and any specific needs (e.g., storage, meeting areas). Then, design flexible spaces that you can easily reconfigure as needs change, such as modular furniture or movable walls. Create office neighborhoods by allocating specific areas for different functions (e.g., workstations, relaxation zones, meeting rooms) to ensure you use the space effectively.
Determine who gets which spaces, such as allocating desks to employees, assigning offices to departments, or setting aside areas for common use. That may also include how much space you allocate for desk hoteling, hot desks, or permanent desks.
Find a good balance of various needs by ensuring that space allocation reflects the priorities of the organization, such as providing more space to teams that require collaboration or privacy (e.g., finance and legal teams). It's important to balance the cost of space (rent, utilities, maintenance) with its utility. That could involve downsizing, relocating, or redesigning spaces to reduce costs while maintaining or improving functionality.
“Everybody’s moving or downsizing space. They are rethinking the way that their spaces are reconfigured. It’s not just having a space for someone to sit, but having collaborative spaces, places where people can disconnect a little bit from everything that’s going on around them.” - Mayra Portalatin, VP of Facilities Services at NVE, Inc.
Optimize space by adjusting the layout or use of space based on feedback and usage data. For instance, if a meeting room is rarely used, it might be converted into additional workstations or a collaborative space. Ensure that the space is used as efficiently as possible, often by minimizing wasted space (e.g., unused desks, excess storage areas).
In the face of climate change, it's also essential to incorporate sustainable practices, such as energy-efficiency lighting, using recycled materials, or designing spaces that reduce the need for artificial lighting. Ultimately, your workspace needs to foster a great workplace experience. Ensure that spaces are comfortable, safe, and conducive to productivity by incorporating ergonomic furniture, adequate ventilation, natural light, and noise control.
Regularly track how the space is being used through observation, surveys, or technology like occupancy sensors. Consider metrics on how space is used, occupancy rates, and costs. Conduct regular audits and reviews to ensure that space is being used effectively and that any necessary adjustments are made. You can use the data you collect to provide regular reports to stakeholders on space usage, costs, and any changes made or recommended.
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Space management has always been important when ensuring offices are run safely and efficiently. With flexible work schedules, effective space management becomes even more essential in reducing energy use and costs, enhancing collaboration and productivity, and improving the overall employee experience. Here are some key advantages:
Effective space management optimizes available space, reducing waste and ensuring that resources like electricity, furniture, and equipment are used effectively. A well-managed space is also efficient in quickly adapting to changes, like accommodating new employees, introducing new technology, or rearranging existing office designs. This flexibility allows organizations to expand operations without significant disruptions or setbacks.
Hybrid work allows organizations to slim down on unused real estate, helping to better control costs and reduce carbon footprint. By optimizing space, businesses can avoid unnecessary expansions and lessen the need for additional office locations, thus saving on rent and maintenance expenses.
How a space is designed and the amenities in it can affect employee productivity. Gensler research found that high-quality spaces lead to higher-performing teams. Well-organized spaces designed with functionality in mind create a more comfortable working environment, leading to higher employee morale, less stress, and better collaboration. All of these factors ultimately boost employee productivity.
Effective space management can lead to reduced energy consumption by maximizing natural light, optimizing heating and cooling, and reducing the need for more spaces or new constructions. Space optimization can lower an organization’s real estate and carbon footprint, reducing energy emissions.
Space management is the process of optimizing the use of physical space. It is a strategic goal to maximize functionality, comfort, and productivity while minimizing waste and inefficiencies. Space management is more challenging in hybrid work environments because of the flexibility in spaces and schedules.
With organizations downsizing their office real estate and hybrid working patterns becoming the norm, incorporating flexible spaces is one solution to optimizing space use. A variety of flexible spaces, including ones for collaborating and relaxing, is essential to improving productivity and engagement. High-performing workplaces have better access to spaces that offer a more diverse range of work settings for individuals and teams (Gensler).
However, space management for a variety of spaces is more challenging, from creating the ideal space to maintaining it. For example, space management challenges for universities include finding the right space. Students, faculty, staff, and sometimes visitors share limited spaces on a school campus. People may end up physically checking room to room to find a space for a rehearsal or to study. Effective space management incorporates a space management system to help everyone who needs space more easily find and reserve one.
See how Skedda helps these universities streamline their space management.
Flexible schedules also make managing space more challenging due to the unpredictability of how busy the office will be on any given day. Many organizations are following best practices when structuring hybrid work schedules, allowing teams to decide which days they meet. This arrangement allows for more autonomy and enhances productivity but can make it challenging to find the optimal amount of office space needed and the types of spaces needed.
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Facilities managers need to be more strategic and creative when optimizing the use of space—and controlling those costs without compromising the hybrid work experience. That means highly-utilized spaces still need to be retrofitted with high-quality tools and resources, and less popular spaces may need to be redesigned to better support employees’ work. In addition to managing lighting, temperature, and air quality, effectively utilizing hybrid space is also about intentionally designing spaces that foster collaboration, productivity, and wellbeing.
“It's not just about the buildings that we manage anymore, but what we do beyond that. It’s about making sure that we look at not just how people feel when they come into the building or when they come to work, but outside of that, wherever they are working.” - Christa Dodoo, Head of Facilities Management Services at U.N. World Food Programme
The U.S. Department of Energy recently released a national definition of a zero-emission building to guide organizations in decarbonization efforts. The push for sustainability and corporate responsibility puts energy reduction at the forefront of facilities management priorities. That means spaces must be managed much more optimally, like installing energy-efficient HVAC systems, automatically turning off lights when a space is unused, or controlling the amount of AC/heating depending on the number of people in the office.
Hybrid work has disrupted traditional working patterns and changed how facility leaders manage space. Workers no longer use office spaces the same way. Instead of having employees in the office five days a week tied to an assigned seat, hybrid work has increased flexible spaces and seating arrangements. And lastly, new sustainability laws and the pledge to combat climate change have forced organizations to invest in tools and infrastructure to meet energy and emission reduction goals.
The focus on sustainability in facility management has led to an increase in energy management systems (EMS), a group of digital tools that help monitor, control, and optimize an organization’s energy performance. For example, an EMS helps building maintenance teams monitor and manage the electricity use in a building.
The number of technologies used in space management increases every day. From smart technologies and IoT (Internet of Things) to Artificial Intelligence (AI) and Predictive Analytics, facilities leaders increasingly rely on tech tools to manage spaces more effectively. These technologies provide more granular insights into space use patterns and energy consumption, allowing for a more differentiated and practical approach to managing spaces in hybrid work environments.
“Where we're headed next is so much more into predictive analysis, into machine learning in this space, really leveraging our operations and maintenance space into a way that we can use things like digital twins to help really understand, in a very predictive and proactive way, how we can maximize the effectiveness of the spaces that we oversee and lead.” - Lynn Baez, Enterprise VP of Facilities and Workplace at McKesson
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Hybrid work makes tracking who’s onsite at what time more challenging. Organizations can have employees, contractors, visitors, clients, and more all onsite working during an emergency. That’s why more organizations are incorporating Visitor Management and their space management platforms to track occupants onsite and record people going in and out. Having a record that’s updated live can help ensure that all parties are accounted for during an emergency and boost safety and security daily.
New laws like NYC’s Local Law 97 and Boston’s BERDO push aggressive sustainability goals to the forefront. Facility leaders need to find efficiencies and cost savings in managing spaces to meet these new sustainability goals.
“One of the main opportunities I see for facilities management in the wake of the pandemic is to take advantage of that seat at the table that we've been given finally and to be able to impact the workplace in ways that we were not doing in the past, especially when it comes to the wellbeing of the employees or the occupants of the building.” - Christa Dodoo, Head of Facilities Management Services at United Nations World Food Programme
Office space management is essential for ensuring that a workspace is productive, efficient, and comfortable for employees. Here are some key considerations when managing office space:
To determine what size your hybrid office should be, you need to first consider the space requirements. That includes the number of occupants, the type of activities that will occur, the frequency of office use, the number of employees and their roles, and any specific needs (e.g., storage, meeting areas). Hybrid work calls for new workspace designs, emphasizing easily configurable flexible spaces. That might mean allocating more flexible meeting or coworking spaces and planning for fewer permanent desks. As organizations navigate the hybrid work model, having office design for hybrid work is crucial.
New technology can significantly reduce the need for physical space by enabling remote work, enhancing communication, and optimizing the use of existing space. For example, technology like desk booking systems, occupancy sensors, and digital signage can help manage space efficiently and track usage trends to inform future space decision making. In addition to optimizing space use, organizations may need to update their tech infrastructure to ensure employees can be productive anywhere in the office, from providing sufficient power outlets and ensuring that everyone can get strong Wi-Fi coverage.
Employees want an array of spaces that can meet all their working needs, from flexible hot desking seats and tech-rich conference rooms to peaceful areas for relaxation. Gensler research found that in high-performing workplaces, 94% of employees have a choice in where they work within the office. Organizations also need to ensure that the space supports employees’ health and wellbeing by providing ergonomic furniture, proper lighting, and noise-canceling measures to reduce distractions. Incorporating indoor plants or outdoor areas also helps to enhance the office environment and promote wellbeing.
Organizations have different needs. For some, it might make sense to wait to own their office space due to the stage the company is currently in. Considering the cost difference between leasing and owning your office space is important based on long-term business goals. Also, facility leaders should use insights from space management systems to analyze how office spaces are used to see if they can control costs in other ways. If an area is consistently underutilized, they might opt for a smaller footprint.
Organizations should use energy-efficient lighting, HVAC systems, and appliances to reduce overall energy use. When reasonable, flexible seating can also cut down on office real estate and energy use. Efficient hot desking among hybrid workers can reduce carbon footprint by 28%, according to a study in the Proceedings of the National Academy of Sciences. Additionally, organizations can help in-office workers make greener choices by implementing recycling stations and providing utensils and cookware instead of disposable ones.
Now that you understand the space management process, here are some effective space management strategies:
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Implementing an effective space management strategy in a hybrid work environment involves balancing flexibility, cost efficiency, and employee satisfaction. Here are some best practices to help you improve your space management strategy:
A well-defined policy will set clear rules and guidelines for space usage, including booking desks and meeting rooms. Clear rules ensure that everyone can use the space they need when they need it. Your space policy may also include cleaning and sanitation guidelines for how to keep spaces tidy for others to use afterward, creating a more satisfactory experience for all. Organizations may develop their space policies with hybrid work policies to ensure that the office adapts to surges on busy days and conserves energy on less popular days.
A space management system that allows employees to reserve desks, meeting rooms, and other shared spaces can bring organization to an environment with lots of moving pieces. Platforms with custom floor plans make it easier for employees to locate available spaces and navigate the office, ensuring they can find a space that suits their needs.
Additionally, space management systems provide real-time data on how space is used, informing organizations what works well and what does not. Organizations can learn a lot when using a space management system with occupancy sensors to track foot traffic and usage patterns. This allows facility leaders to make data-informed decisions about future space needs or repurposing underused areas.
A pillar of effective space management is the continuous maintenance of space, including ensuring it adapts to changes over time. Organizations must ensure they can quickly reallocate their space to meet evolving needs. That might mean everything from incorporating flexibility into the physical space to using technology that can adapt to changes. Flexible, modular furniture that can be easily moved can speed up the process of meeting changing needs or team sizes. Tech tools that are easy to use with a great support system can also make updating changes in your platforms a breeze.
When selecting a space management system, you should get the basics right first. That means ensuring the platform has top-notch security, great support if something happens, and ongoing updates to adapt to changes.
After you have the basics down, you should look for features that make managing spaces easier. That means interactive maps to visualize your space, integrations that fit seamlessly with your current tech stack, analytics and insights to help with decision-making, and robust management capabilities to suit all your nuanced needs.
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The future of space management is being shaped by evolving workplace dynamics, advancements in technology, and shifts in how companies approach their physical environments. Key trends indicate a move toward more flexible, efficient, and data-driven management practices that prioritize the workplace experience, sustainability, and adaptability. Here are the most prominent developments shaping the future of space management:
With hybrid work becoming more common, office spaces will be designed for flexibility. Hot desking, coworking areas, and dynamic seating arrangements will become standard. Organizations will also create more activity-based working (ABW) workspaces. That means designing offices around specific activities rather than assigning employees a fixed desk, with emphasis on a variety of spaces for focus work, collaboration, creativity, and relaxation.
“Remote work and downsizing office spaces is the biggest challenge I see. It’s projected that $800 billion of potential losses from unused office space will impact major cities by 2030. If our facilities have less people in them, then space utilization and asset/resource allocation is where we should focus some of our efforts.” - George Alvarado, Director of Service Delivery Training at C&W Services
The future of offices will be a technology-integrated one. Organizations will increasingly use sensors to monitor space utilization, temperature, lighting, and occupancy. This granular data will help facility leaders optimize the use of space, improve energy efficiency, and make real-time adjustments. Organizations will also increasingly use AI-powered tools to analyze data from various sources to make recommendations on space usage, employee workflows, and resource allocation. Additionally, predictive analytics will help organizations anticipate future needs and proactively make necessary changes.
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New emission laws and sustainability goals will drive organizations to prioritize using smart lighting systems, automated HVAC, and energy-efficient materials. Organizations will also work toward creating net-zero spaces, using renewable energy sources, and reducing office waste.
With employee wellbeing declining and employees feeling more isolated than ever, organizations will focus more heavily on improving employees’ wellbeing and engagement. That may mean investing in spaces such as relaxation rooms, meditation pods, or quiet zones, with the overall goal to reduce stress and enhance comfort. Additionally, organizations can incorporate new technology and office designs that fit employees’ work preferences and needs, helping to create a more comfortable workplace environment.
Organizations may create office neighborhoods where certain areas are for employees who need more privacy or quiet based on their roles. That may include adding soundproofing, private booths, and enhanced acoustics. With increased reliance on technology and remote work, cybersecurity will also play a crucial role in hybrid work. Organizations will need to be diligent in ensuring their tech stack is up to date to prevent cybersecurity attacks, and in cases where there are breaches, have the defenses in place to counter them.
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