From Overhead to Optimization: How Next Sense Leverages Data to Boost Workspace Efficiency and Lower Your Carbon Footprint
In today’s hybrid work environment, corporate talent and employees alike are demanding new ways of working. Since the onset of the “New Normal” during and after COVID-19, office owners and tenants have faced various challenges. Some have reintroduced mandatory office days, while others have almost entirely shifted to remote work. Regardless of your approach, Next Sense is here to help you enhance operational efficiency. Our Building Performance Experts, empowered by AI, can analyze your situation and leverage data to guide you in the right direction.
Office Occupancy: A Key Factor for Operational Efficiency
Office occupancy is a critical factor for corporate stakeholders navigating the evolving work and real estate landscape. Companies must balance energy efficiency with employee comfort by making smarter decisions about space usage. By closely monitoring occupancy patterns, organizations can drive significant improvements in both operational performance and sustainability goals.
Insights from Next Sense Research
Our recent data reveals how office occupancy rates have evolved in the past few years. In cities like Amsterdam and Berlin, the average meeting room or office space is used only 40% of the time on an average day. Ideally, meeting rooms should be used between 50-80% of the time, indicating that current space usage rates are less than optimal. Additionally, we’ve observed that on Mondays and Fridays, space utilization drops to around 20%.
CBRE’s recent Survey of 120 European Companies shows that 61% of companies report an average office utilization between 41-80%, up from 48% last year, reflecting an obvious trend toward increased office occupancy. In London , office utilization rates are at 55%, making it the top performer among European markets. In comparison, New York, the leading North American market, lags behind at 44%. From our clients' data, we have seen that the return to office post-COVID has been gradual, influenced by the nature of the work, the ease of completing tasks from home, and the convenience of commuting.
As our CEO & Co-Founder, Ferdinand Grapperhaus, aptly puts it, “The transition back to the office has been nuanced and is closely tied to how well employees can perform their tasks remotely and the benefits of returning to a physical workspace.”
The Importance of Customization
Occupancy rates can vary widely depending on the location and type of office space. For instance, one of our clients observed that the freedom to work from home, coupled with multiple office locations within the same city, dispersed the workforce. This led to a preference for locations with better amenities and proximity to employees’ homes. Conversely, a newly completed office by another client saw occupancy rates peak above 80% in the initial months due to the appeal of the new space.
Ferdinand Grapperhaus notes, “There is no one-size-fits-all solution when it comes to office occupancy. Understanding the specific needs of employees and adapting buildings accordingly is essential. Institutions must consider these factors to attract high-quality tenants.”
Flexible Space Management
Since COVID-19, the rise of Flex Space Management has created opportunities to monetize underutilized office space. Whether for events, gallery exhibitions, or community activities, creative use of office space can be a significant revenue stream. Employers can also use spaces after-hours for employee-driven events to boost engagement and satisfaction.
Portfolio Reductions and Sustainability Focus
Looking ahead, the CBRE study revealed that nearly 60% of companies expect a reduction in their portfolio size over the next three years. This shift is driven by the need to reduce real estate costs and optimize space usage. On the other hand, a quarter of companies anticipate expanding their portfolios due to business growth. Identifying the advantages and disadvantages of existing leases and optimizing the use of flex space will be crucial in this transition.
The focus on sustainability is becoming more intense in newly developed office environments, especially when aligned with data-backed space usage strategies.
Finding the Golden Middle: Strategic Office Occupancy Planning
A notable case from one of our clients illustrates the value of finding an optimal solution for all. By analyzing office occupancy data from locations in both Europe and Australia, we discovered that their spaces were utilized only 10-20% of the time. Instead of immediately terminating their leases, we recommended a strategic approach: closing off certain floors on specific days. This measure not only led to substantial energy savings and a reduced carbon footprint but also provided a valuable opportunity to research employee preferences and space usage behavior. This approach ensures that decisions about reducing office space are informed and considerate of both operational efficiency and employee needs.
As CBRE’s head of European office research, Richard Holberton, said in a statement for Bloomberg: “The general acceptance of hybrid working is widespread, but the challenge remains of matching employers’ expectations with that of their employees over the long term.”
A Summary of Space Usage Optimization by Next Sense
- Improving physical office spaces and employee experience
- Optimize open workspaces by improving the use of flex-desks, phone booths, and meeting rooms.
- Allocate spaces based on individual needs and roles.
- Close off work floors according to occupancy to reduce energy consumption.
- Enhance maintenance and cleaning services by better distributing space usage.
Ready to Optimize Your Office Space?
Schedule a free demo with our expert team to discover how Next Sense can enhance operational efficiencies and reduce your carbon footprint.
