How to Calculate Space Utilization for CRE [+Key Metrics]

Hybrid work has made every office a moving target. Yesterday’s “full” floor can sit half-empty tomorrow. That’s why measuring space utilization today is less about how many desks are filled and more about how you’re taking advantage of the workspace’s adaptability. 

Adaptability in space utilization means creating workplaces that flex and scale with how people actually work. When attendance fluctuates, you need a clear view of which areas are overused, which sit idle, and how to reconfigure them to meet shifting demand.

This is especially important in 2026 as certain trends converge. Rising real estate costs mean underused square footage could translate to millions of dollars in waste. Higher expectations for employee experience and well-being mean poor utilization could hurt productivity and job satisfaction. And sustainability goals are at odds with inefficient use of space.

Addressing these issues and optimizing space utilization requires real-time visibility and deep insights. The more data you can collect about your space, the easier it is to adapt layouts, optimize costs, and create work environments built for current workplace expectations.

What is space utilization and why is it important?

Space utilization measures how effectively an organization uses its physical workspace over time. It goes beyond simple occupancy counts to assess whether each area of the office is serving its intended purpose and whether the company is getting full value from its real estate investment.

Optimizing space utilization matters because it directly affects how efficiently, comfortably, and sustainably a business operates:

• Financial efficiency. Office space is one of the largest operating expenses for most organizations. Understanding how much of it goes unused helps reduce wasted square footage and improve return on real estate investments.

• Operational agility. Accurate utilization data enables faster, evidence-based decisions to match how people actually use the office (e.g., when to consolidate, expand, or reconfigure work zones).

• Employee experience. Well-utilized spaces strike the right balance between collaboration and focus. Tracking usage helps teams design workplaces that support both.

• Sustainability and ESG performance. Optimized use of space reduces energy waste and supports transparent environmental reporting.

• Future-proofing. Utilization data builds the foundation for continuous improvement, allowing organizations to evolve their workplace strategy alongside changing work patterns.

In short, knowing how your space performs is the first step toward making every square foot work harder for your people and your bottom line.

How to track and calculate space utilization

Tracking space utilization starts with understanding what you want to measure and why. In a hybrid environment, static occupancy data doesn’t tell the full story. A floor plan may show 300 desks, but if only half are used on an average day, that “fully occupied” space isn’t performing as intended.

To make smarter real estate and design decisions, facility teams need quantifiable data that connects people, place, and purpose. That means tracking both how often spaces are used and how effectively they support work. The right metrics reveal patterns of underuse, identify high-demand zones, and tie utilization back to financial performance.

Most organizations start with two core approaches: tracking key utilization metrics and applying a simple utilization formula to turn daily usage into measurable performance data.

Metrics to track

Measuring space utilization means going beyond simple headcounts. The goal is to understand how each part of the office performs. That includes where people work, how often they use shared spaces, and what that means for cost and capacity. The following metrics provide a balanced view of efficiency, density, and financial impact.

Together, these metrics paint a complete picture of how space supports the business. Tracking them consistently helps facility and real estate teams balance cost, capacity, and employee experience over time.

Space utilization formula (with example)

Once you’ve identified the right metrics, the next step is turning those numbers into something measurable. Most organizations start with a simple space utilization rate to see how much of the available capacity is actually being used. From there, you can layer in density and cost data to get a more complete picture.

Example scenario:

A company occupies a 20,000-square-foot office that supports 300 full-time employees. Under a hybrid model, there are only 150 available desks for hot-desking. On an average day, 120 people come into the office.

Step 1: Calculate desk utilization

Use the formula: Desk Utilization (%) = (Number of people on site ÷ Total available desks) × 100.

In this case: (120 ÷ 150) × 100 = 80% desk utilization

That means the available seating is being used efficiently on most days.

Step 2: Calculate space per occupant

Use the formula: Square feet per occupant = Total office square footage ÷ Average daily occupancy.

In this case: 20,000 ÷ 120 = about 167 sq. ft. per person

This figure shows how much space each person actually occupies, which is helpful for spotting excess capacity or underused areas.

Step 3: Interpret the results

High desk utilization with a large amount of space per person often means your layout is functional but oversized. You’re paying for more space than your daily attendance requires. Conversely, low desk utilization with limited space per person can signal overcrowding or poor scheduling balance.

Step 4: Apply the insights

• Consolidate or repurpose underused areas

• Reconfigure layouts to match actual attendance patterns

• Track changes over time to confirm whether adjustments improve utilization

Regularly reviewing these calculations helps teams maintain a data-driven understanding of how well their workplace supports hybrid work and whether every square foot is earning its keep.

3 methods to measure space utilization rate

There’s no single right way to measure space utilization. The right method for you depends on your workplace size, budget, and how precise you need the data to be. 

Some organizations start with manual headcounts or booking audits. Others rely on live sensor data or digital twins that provide continuous insight into how every square foot is used.

Each approach offers a different balance of cost, accuracy, and visibility. Understanding the strengths and limitations of each helps facility teams choose the right mix for their organization.

1. Manual audits of space bookings

Manual audits are the simplest way to measure how your office is used. They rely on methods like clipboard counts, badge-swipe data, or reviewing meeting-room schedules to get a snapshot of occupancy.

The main advantage is cost. It’s inexpensive because there are no sensors, software, or integrations required. However, these audits are time-consuming and limited in accuracy. They capture usage only at specific moments, so they miss the fluctuations that happen throughout the day or week.

Manual audits are best suited for:

• Quick baseline snapshots or validating data from other systems

• Smaller offices or organizations without advanced facility software

• Periodic checks or pilot studies before making larger technology investments

While these methods won’t give you continuous visibility, they’re a practical starting point for understanding basic space performance and identifying whether deeper analysis is worth pursuing.

2. Sensor-based tracking and IWMS integrations

Sensor-based systems provide a more accurate, real-time view of how space is being used. These setups can include overhead sensors, desk sensors, or Wi-Fi and Bluetooth (BLE) triangulation to track movement and occupancy patterns throughout the day. The data typically feeds into an Integrated Workplace Management System (IWMS) for centralized analysis.

This approach gives facility teams live insights into how attendance fluctuates, which spaces fill up first, and how usage changes over time. It also supports operational efficiency, helping optimize cleaning schedules, HVAC performance, and hybrid scheduling policies.

Privacy is an important consideration. Most modern sensors are designed to detect motion or heat signatures, not capture personal information. They process data locally and anonymize it before storage, ensuring compliance with workplace privacy standards.

Sensor-based tracking is most useful for:

• Medium to large workplaces with fluctuating in-office attendance

• Corporate offices managing building systems or energy use dynamically

• Organizations using live data to fine-tune hybrid work schedules

Matterport complements this approach by integrating with IoT and building data platforms, allowing teams to visualize sensor data directly within a 3D model of their workspace. The result is a complete picture of not just how much space is used, but where and why.

3. Digital twins and smart building analytics

Digital twins take space measurement to an entirely new level. By creating a detailed 3D model of the physical environment, they give teams a live, spatially accurate view of how every area of the workplace is used. When combined with IoT data, these digital replicas can display real-time occupancy maps that show exactly where activity is happening and where space sits idle.

This blend of visual context and live data unlocks powerful possibilities. Facility and real estate teams can model new layouts, test seating plans, or evaluate collaboration zones virtually without disrupting daily operations. It’s a faster, lower-cost way to explore “what if” scenarios before making physical changes.

Digital twins are especially valuable for:

• Large or multi-site portfolios managing ongoing layout changes

• Corporate real estate teams optimizing long-term costs and capital planning

• Hybrid workplaces connecting space data to employee experience

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Matterport provides the spatial foundation that makes this level of analysis possible. Each Matterport digital twin captures precise measurements and details that become the baseline for utilization studies. 

Teams can overlay sensor data, simulate new configurations with the Defurnish feature, and collaborate directly within the 3D model. By integrating with design and operations tools, Matterport helps organizations move from static floor plans to a living, data-driven workspace strategy.

How to optimize your office layouts to improve space utilization rates

Collecting utilization data is only the first step. The real impact comes from using those insights to shape how your office functions day to day. Once you understand which areas are overused, underused, or misaligned with employee needs, you can redesign your layout to support flexibility, collaboration, and focus without expanding your footprint.

Modern optimization is an iterative process. Facility teams experiment with new configurations, measure the results, and refine continuously. With the right data and digital tools, those changes can happen faster, cost less, and create workplaces that evolve in real time alongside the people who use them.

Identify and repurpose underused zones

Utilization data will reveal patterns. Large desk areas sitting idle while smaller meeting rooms or collaboration zones are constantly in demand. These underused zones are prime candidates for repurposing into higher-value spaces such as lounges, huddle rooms, or quiet pods.

The key is to make changes strategically, based on actual usage patterns rather than assumptions. By visualizing occupancy heat maps or traffic data, facility teams can pinpoint exactly where space can be reclaimed without disrupting daily operations.

With Matterport’s Defurnish tool, you can take that process a step further. Teams can strip furniture from a 3D model to see the bare layout, experiment with new configurations, and virtually stage redesign concepts. It’s a fast, low-risk way to plan transformations that align with how employees really use the office.

Test the feature on the following model simply by clicking on the “Hide furniture” icon in the bottom left corner:

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Support flexible seating and desk sharing

In a hybrid workplace, fixed seating often leads to wasted space. Flexible seating models—like hot-desking or activity-based work areas—help align daily attendance with available capacity. The goal is to make sure every desk, seat, or zone has a purpose on any given day.

Start by analyzing daily demand curves to understand peak attendance and typical occupancy patterns. Then, set dynamic seat assignments or booking rules to match. For example, allow reservations a few days in advance, enforce short booking windows to prevent hoarding, and build in buffer time for cleaning or sanitization between uses.

Change management is just as important as policy. Communicate clearly, give employees options, and collect feedback as you iterate. Matterport’s Tags and Notes make this easy. Facility teams can annotate 3D models with labels, instructions, or open comment areas so employees can suggest improvements directly within the virtual workspace.

By connecting data, policy, and employee input, flexible seating becomes both a cost-saving measure and a framework for responsive, people-centered design.

Properly scope capacity for meeting and collaboration spaces

Meeting and collaboration spaces are among the easiest areas to misjudge. Large conference rooms often sit half empty, while small huddle rooms are booked solid for weeks. The solution is to use utilization data to set clear capacity thresholds, then right-size each space to meet actual demand.

If occupancy data shows that a 12-person room rarely hosts more than four people, that space can likely be split into two smaller collaboration zones. Conversely, if teams consistently overflow small meeting rooms, consider merging adjacent spaces to create a larger shared area.

Matterport’s schematic floor plans make these changes easier to plan and communicate. The precise 2D layouts generated from each digital twin give architects and facility teams the accurate dimensions they need to scope renovations, manage bids, and avoid costly misorders. For more advanced projects, Matterport’s integrations with Revit, AutoCAD, and other BIM tools allow you to bring verified spatial data directly into design workflows so every change is based on the real-world dimensions of your building.

With accurate planning data and virtual models in place, teams can optimize their collaboration spaces for both efficiency and experience.

Continuous benchmarking and iteration

Space optimization is a continuous cycle. Attendance patterns shift, teams grow or contract, and business priorities change. The organizations that get the most value from their real estate are the ones that treat utilization as an ongoing process: measure, adjust, remeasure, and repeat.

To keep that cycle running smoothly:

• Establish key benchmarks. Track space utilization rate, meeting room occupancy, and cost per occupied seat.

• Rescan regularly. Quarterly or biannual rescans capture layout updates and give you a fresh baseline for comparison.

• Compare before-and-after data. Use dashboards to visualize improvements and identify new optimization opportunities.

Matterport makes this continuous improvement loop easier to manage:

• Archive and layer digital twins to see how the workspace has evolved over time and visualize utilization improvements.

• Push schematic floor plans into your IWMS for live occupancy overlays that combine spatial accuracy with real-time building data.

• Maintain always-current documentation to support ESG reporting, compliance audits, and long-term portfolio planning.

With accurate, up-to-date digital models, you can build a system for continuous optimization that keeps your workspace aligned with how people actually use it.

Building a workplace that’s ready for what’s next

Modern work will keep evolving, and so will the spaces that support it. By combining reliable utilization data with digital tools like Matterport, organizations can make smarter decisions about how they design, manage, and adapt their workplaces.

With every scan, layout adjustment, and benchmark, the office increasingly becomes a flexible asset that evolves with the business. The result is a workspace that’s efficient, sustainable, and ready for whatever comes next.

If you want to learn how Matterport can help you lay a foundation for better space utilization, reach out for a demo.