What Is Space Management? 6 Steps to Better Hybrid Workplaces

Space management (also called workplace management or space planning) involves the continuous planning, designing, and optimization of physical workspaces. Hybrid work has fundamentally changed space requirements: fewer workers are in the office at any time, but those who come in need access to diverse space types that support different work activities.

Per JLL, 30% of all office space will be used flexibly by 2030—up from approximately 2% in recent years. This represents a seismic shift in how organizations think about real estate. Meanwhile, the average office goes unused 55% of the time, highlighting the efficiency opportunity that effective space management addresses.

"Pre-COVID, we were always about being efficient, budget-driven. Cost per dollar per square meter per square foot per person, whatever it may be. We were very efficiency-driven. Now, my opinion is we need to become much more effective." — Larry Morgan, Director of Global Facilities Management and Corporate Sustainability Initiatives at SAP

This guide covers what space management is, how it works, the benefits of space management systems, common failure modes, and a six-step implementation framework.

The Four Essential Space Categories

Gensler's workplace research identifies four categories of spaces that are essential for office workers—similar to the four food groups for balanced nutrition. High-performing workplaces provide access to all four:

Organizations that provide only one or two of these categories—typically individual work and meeting rooms—miss the opportunity to support the full range of work activities that drive productivity and engagement.

Space Utilization Benchmarks

Understanding utilization benchmarks helps organizations set realistic targets and identify optimization opportunities:

Key insight: 79% of organizations target utilization rates of 65% or higher, yet actual utilization averages just 38%. This gap represents significant optimization opportunity—or evidence that targets are unrealistic for hybrid work.

Meeting room benchmarks: 40-60% utilization is healthy overall. Small rooms should target 50-70%, medium rooms 60-75%, and large rooms (10+ people) only 40-50% since they're intended for less frequent meetings.

Desk usage reality: 64% of occupied desks are used for less than three hours daily; only 17% are used for five or more hours. Traditional full-day desk occupancy has become the exception, not the norm.

Benefits of Space Management Systems

A space management system is software that helps organizations plan, design, and continuously optimize their workspace. Per JLL, 37% of global organizations plan to increase their co-working or flex space use, driving demand for systems that can manage this complexity.

Optimizes Space Utilization

Space management platforms provide analytics to track which spaces are popular versus underutilized. Based on industry data, 40% or more of an office's dedicated desk space sits unused on any given day. A space management platform with interactive maps and booking rules can help create office neighborhoods that cluster teams together and match space supply to actual demand.

Controls Costs and Energy Use

When paid-for office space goes unused, that's wasted money. Space management platforms enable organizations to decrease real estate footprint without compromising workplace experience by cutting underused spaces and redirecting resources to high-demand areas. Knowing peak use times also informs energy management—turning off heating/cooling when spaces are empty.

By implementing hot desking or desk hoteling, organizations can reduce office operating costs by up to 30% (Leesman Index).

Improves Collaboration and Coordination

The "hybrid work coordination tax" is a real problem: employees struggle to know who will be in the office and when. Space management platforms with desk and meeting room bookings, plus two-way calendar sync, make coordinating in-office time easier. Real-time updates ensure booking changes appear immediately, reducing conflicts and administrative overhead.

Fosters Productivity and Satisfaction

Research shows a positive correlation between office design and productivity. According to Gensler, high-performing workplaces have better access to spaces for critical work activities and offer a more diverse range of workspaces. Space management platforms help organize office layouts to provide the spaces, amenities, and resources employees need for their best work.

Reduces Carbon Footprint

Organizations with sustainability goals use space management to implement seat sharing (hot desking or desk hoteling). A September 2023 study by Cornell University and Microsoft, published in PNAS, found that seat sharing can reduce carbon footprint by 28% compared to no seat sharing. Minimizing wasted space also reduces the energy required to heat, cool, and light unused areas.

When Space Management Fails

Space management initiatives can fail when organizations don't address these common challenges:

Relying on manual planning without data: Using spreadsheets or intuition instead of real-time occupancy data leads to inaccurate space allocation, wasted resources, and costly redesigns.

What helps: Invest in space management software with IoT sensors and analytics. Track utilization metrics systematically rather than relying on assumptions.

Ignoring employee preferences in space design: Generic layouts created without employee input result in decreased productivity, resistance to using new spaces, and low adoption of flexible seating.

What helps: Conduct surveys and focus groups before redesigning. Involve employees in the planning process. Offer a variety of space types for different work modes.

Optimizing purely for cost without considering experience: Focusing only on cost per square foot without balancing employee needs leads to overcrowded floors, lack of collaboration spaces, and talent retention issues.

What helps: Balance cost metrics with employee satisfaction scores. Maintain all four essential space categories (per Gensler). Measure productivity alongside utilization.

Poor integration between systems: Space management software that doesn't integrate with calendars, HR systems, or building management creates booking conflicts, outdated availability information, and employee frustration.

What helps: Choose software with native integrations (Outlook, Google, Slack, Teams). Ensure two-way sync. Test integrations before full rollout.

Using wrong metrics to measure success: Over-relying on "percent of workspaces used at any time" without accounting for movement patterns, meeting attendance, or employee experience leads to misleading data and poor decisions.

What helps: Track multiple metrics: utilization AND satisfaction AND collaboration frequency AND no-show rates. Don't assume an empty seat equals wasted space.

Key Metrics for Space Management Success

Space Management Best Practices: A Six-Step Framework

1. Assess Your Current Space

Understand what you have before optimizing. Inventory the number of occupants, types of activities, specific needs (storage, meeting areas), and current utilization patterns. Hybrid work requires flexible spaces that can be easily reconfigured—audit whether your current layout supports this.

2. Invest in the Right Tools

A robust space management system is essential. Smart technology tools—IoT devices, occupancy sensors, booking software—provide real-time data for informed decisions. These tools help predict future space needs and identify underutilized areas before they become costly problems.

3. Involve Stakeholders

Effective space management maximizes functionality for everyone involved. Survey employees, department heads, and company leaders to understand needs and preferences. Create communication channels for continuous feedback throughout implementation. Space designed without user input rarely achieves adoption.

4. Optimize Space Utilization

Minimize waste without compromising function and comfort. Promote flexible working (hot desking, desk hoteling) while maintaining collaboration areas. Use insights from your space audit to assign spaces based on stakeholder needs—setting aside common areas, assigning offices to teams needing privacy (finance, legal), and ensuring spaces are used for their intended purpose.

Balance cost (rent, utilities, maintenance) with utility. This might involve downsizing, relocating, or redesigning—while ensuring spaces remain comfortable, safe, and conducive to productivity. Consider ergonomic furniture, adequate ventilation, natural light, and noise control.

5. Adopt Sustainable Approaches

With increasing emphasis on carbon reduction, organizations need sustainable space practices. Options include energy-efficient lighting, recycled materials, designs that reduce artificial lighting needs, and minimizing wasted space (unused desks, excess storage) to reduce the carbon footprint of maintaining those areas.

Seat sharing through hot desking or desk hoteling directly supports sustainability goals by reducing the total space footprint needed per employee.

6. Monitor and Improve Continuously

Space management is not a one-time project. Periodically assess how space is being used—identifying underutilized areas, overcrowded spaces, or discrepancies between intended and actual use. Use observations, surveys, and technology like occupancy sensors to gather data.

Use insights to make informed decisions about space allocations, redesigns, or downsizing. Incorporate workplace data into regular stakeholder reports on usage, costs, and recommended changes.

How Skedda Supports Space Management

Skedda is a workspace management software that helps organizations implement space management through desk booking, room scheduling, and utilization analytics. For space management initiatives, Skedda provides:

• Interactive floor plans with real-time availability
• Desk and room booking with customizable rules
• Two-way calendar sync with Microsoft 365 and Google Workspace
• Analytics on utilization patterns and booking trends
• Support for office neighborhoods and zone-based booking
  

FAQ

What is space management?

Space management is the strategic process of planning, designing, and maintaining physical workspaces to maximize functionality and productivity while minimizing waste and costs. In hybrid work environments, it means creating flexible spaces that match how employees actually use the office—providing the right mix of individual work areas, collaboration spaces, wellness spaces, and social areas.

How do I measure space utilization?

Space utilization is typically measured as the percentage of available space being used at any given time. Track it through occupancy sensors, badge data, or booking software. Industry benchmarks suggest 60-70% utilization is healthy for most offices; hybrid offices often see 30-50% average utilization with peaks below 70%.

How much can space management save?

Organizations implementing hot desking or desk hoteling can reduce office operating costs by up to 30% (Leesman Index). Savings come from reduced real estate footprint, lower utilities, and decreased maintenance costs. A Cornell/Microsoft study found seat sharing can also reduce carbon footprint by 28%, which translates to energy cost savings.

What are the four essential types of office space?

According to Gensler's workplace research, the four essential categories are: spaces for individual work (focus rooms, quiet zones), spaces for creative group work (project rooms, maker spaces), spaces to reflect and restore (meditation areas, outdoor spaces), and spaces to connect and recharge (work cafés, lounges). High-performing workplaces provide access to all four.

What technology do I need for space management?

Essential technology includes: space management software with booking capabilities, occupancy sensors or IoT devices for real-time utilization data, integration with calendar systems (Outlook, Google), and analytics/reporting tools. The software should integrate with existing systems (Slack, Teams, HR platforms) to minimize friction and maximize adoption.

What causes space management initiatives to fail?

Common failure modes include: relying on manual planning without data, ignoring employee preferences in design, optimizing purely for cost without considering experience, poor integration between systems, and using wrong metrics (over-focusing on utilization without measuring satisfaction). Successful initiatives balance cost efficiency with employee experience and use data to drive continuous improvement.

Next Steps

1. Audit current space utilization using sensors, badge data, or manual observation
2. Survey employees on workspace needs and preferences
3. Map current spaces to Gensler's four essential categories—identify gaps
4. Evaluate space management software options based on integration needs
5. Pilot changes with one floor or team before full rollout
6. Establish baseline metrics (utilization, satisfaction, cost per person)
7. Create a continuous improvement cycle with regular reviews and stakeholder reporting

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