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Making Space Utilization Work for Your Organization How Measuring and Analyzing Space Utilization Data Can Optimize Your Workplace

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MAKING SPACE UTILIZATION WORK FOR YOUR ORGANIZATION

A Changing Landscape for Corporate Real Estate With the advent of new technology and software, many corporate real estate (CRE) professionals are shifting from working with assumptions and manual processes to using automation and easily verifiable data. This shift means they are able to bring more value to their organizations and make workplaces more efficient and effective.

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MAKING SPACE UTILIZATION WORK FOR YOUR ORGANIZATION

Measuring Space Occupancy and Utilization: Then and Now For decades, CRE teams have wished for tools that would provide accurate, valid, real-time data about their portfolios, but were limited by the technology or software (or lack thereof) that was available. Today, they can use a range of technology and tools to gather an incredible amount of data about the workforce and the workplace. They can also use advanced space planning and utilization software to analyze that data and improve the environment.

THEN

NOW

CRE teams used allocation data and manual audits to make assumptions about occupancy and utilization

CRE teams can use Wifi, sensors, beacons, and other Internet of Things (IoT) technology to gather accurate, real-time data about the actual use of the workplace

Space planning software limited CRE teams to planning one floor at a time, or at most, one building at a time

Newer, more advanced space planning and utilization software provides a holistic view of the entire portfolio across multiple geographies, but also allows you to drill down to the floor or desk level

Completing audits and using them for space planning was a largely manual process. Space planners would walk the floors so they could manually determine whether someone was in a space, which was time-consuming and not always accurate

Space planning software can be configured so the end user can quickly verify and validate allocation data, which is faster and more accurate than manual walk-throughs. The software can also generate reports on which business units have validated their data, so the CRE team can follow up and ensure accuracy

Creating scenarios involved exporting cross-referenced data from multiple systems (HR, space management, security, etc) into complicated spreadsheets to build possible scenarios.

Space planning software has automated the process, so multiple scenarios can be created in minutes rather than weeks—more time can be spent on analysis and comparison.

Plus, the scenarios are built within the software using real-time data, so when HR or allocation data is updated, it can be automatically updated throughout the scenarios as well

Data from HR or other departments would be exported and manually manipulated using spreadsheets, so when the final space plan gets approved, that data may be out of date

Space utilization software seamlessly integrates data from various organizational sources so adjustments to space planning can be made instantly

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MAKING SPACE UTILIZATION WORK FOR YOUR ORGANIZATION

Get on the Same Page: Defining Occupancy and Utilization Many CRE professionals use space occupancy and space utilization interchangeably. However, especially today, with more and more companies moving towards flexible workplaces (such as open office plans or activitybased workplaces), the two terms have different meanings:

Occupancy is about how many desks or workstations are assigned to a specific employee. For example, if you have 100 desks and 75 employees, and every employee is assigned to a desk, your occupancy rate would be 75%.

Utilization is about the actual use of a given space.

In the above example, every employee may be assigned to a desk, but 15 of them work remotely most of the time, so your utilization rate might be only 60%.

While occupancy typically only describes desks or workstations (that can be allocated to departments or assigned to individuals), utilization can be used to talk about any given space in your workplace: conference rooms, soft seating, and other communal spaces.

With accurate utilization data, CRE teams can get greater insight about how the entire workplace is used. This insight allows teams to make strong, evidence-based decisions about space planning, relocating, workplace optimization, and more.

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MAKING SPACE UTILIZATION WORK FOR YOUR ORGANIZATION

Measuring Utilization in Today’s Workplace As more companies move towards different kinds of flexible workspaces, measuring utilization accurately is critical. Having this kind of data makes it possible for CRE teams to examine and challenge old assumptions and historical standards.

Once you start gathering and analyzing this data, you can start to establish new benchmarks or baselines and use those to set utilization goals and measure the impact of your initiatives.

For years, organizations struggled with swing space and structural vacancy within their portfolio. Now, as companies have access to utilization data, they can make evidence-based decisions, which includes scenario planning for future impacts that can eliminate the need to hold onto extra space.

In some cases, the technology to capture utilization data is already in place and just needs to be collected. For example, employee badge swipe data can be gathered by space utilization software and help CRE teams see utilization for buildings or floors.

However, in order to successfully transition to a flexible workspace, where you might have fewer assigned desks but additional soft seating or collaborative/ meeting spaces, you need more precise utilization data. Companies can install lighting or desk sensors to track movement and activity. The technology you use should be determined by the level of granularity you require.

Once you start gathering and analyzing this data, you can start to establish new benchmarks or baselines and use those to set utilization goals and measure the impact of your initiatives.

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MAKING SPACE UTILIZATION WORK FOR YOUR ORGANIZATION

What to Do With Utilization Data Once CRE teams have established the methods by which they’ll collect, analyze, and apply utilization data, they can move from being “order-takers” to making proactive decisions about how to optimize or right-size their workplaces.

Before tackling any of these initiatives, however, take some time to review company goals and strategic plans to make sure you’re focusing your efforts on what will have the biggest impact.

Understand How Employees Work Utilization data can show how many employees are actually in the office on average, how often they’re focusing on solo work at their desks or collaborating with others, and more. With this kind of data, CRE teams can make changes to the space to better serve employees, their work patterns and specific workplace needs.

“Right-Size” Office Space The open office trend can largely be attributed to companies looking for ways to save money on real estate costs. Instead of just trying to downsize your space and fit employees into as small a footprint as possible, utilization data can help CRE teams find the right balance between releasing unnecessary space and providing a workplace where employees can be productive, collaborative, and engaged.

Encourage Business Units to Evaluate their Actual Space Needs It’s common for business units to think they understand how their space is being used or how many workstations they need. A department head might want to hang on to extra desks “just in case,” but with accurate utilization data, the CRE team can show how keeping that space may negatively impact the unit’s bottom line.

Improve Building Efficiency For many CRE teams, a common finding once they start looking at real-time utilization data is that the times when most employees are in the office may not align with the schedules for the HVAC system. Adjusting these schedules so the AC doesn’t turn on too early, for example, can result in six- or sevenfigure savings annually in utility costs depending on the footprint of your building.

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MAKING SPACE UTILIZATION WORK FOR YOUR ORGANIZATION

Evaluate Multiple Move Scenarios Instead of spending months creating potential move plans to evaluate your portfolio options, space planning software that uses utilization data can help you create more accurate move scenarios. You can then compare the different plans, looking at everything from total costs to potential impact on employee commutes.

Build Stronger Business Cases Historically, CRE teams have found business cases challenging because they relied on subjective evidence and data that wasn’t easily verifiable to make hard dollar decisions. Using validated utilization data from badge entry swipes, lighting sensors, and more allow you to put quantifiable assessments to items that were estimated in the past.

Transition to Flexible or Activity-Based Workspaces With accurate utilization data, you can more easily show how a switch from 1:1 seating to 1:1.5 or even 1:2 desk to employee ratios can be successful. Instead of just relying on reported use cases, industry benchmarks or even historical company benchmarks, you can create a transition plan that’s customized to your current workplace and employees.

Plan for Peak Utilization If your average utilization rate is around 60%, there will still be days where the utilization rate is higher. Tracking utilization data over time will help you see trends—certain days, weeks, or months with heavier or lower utilization—so you can plan accordingly: making sure that there’s sufficient flexible or soft seating with strong Wi-Fi and outlets for laptops, for example.

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MAKING SPACE UTILIZATION WORK FOR YOUR ORGANIZATION

What’s Next for CRE and Space Utilization This is just the beginning. We’re excited to see increases in the technology available and its adoption, but with this, companies may want to invest in data management and data science. Otherwise, they won’t be able to collect and use that data effectively and see the greatest benefits.

As utilization data becomes more widely used and we get a better picture of how employees use the space, and what kinds of spaces foster or inhibit productivity, CRE teams can apply a more strategic view.

For years, CRE teams have focused primarily on using their space as efficiently as possible—meaning doing whatever they can to lower real estate costs.

As utilization data becomes more widely used and we get a better picture of how employees use the space, and what kinds of spaces foster or inhibit productivity, CRE teams can apply a more strategic view. They’re better able to understand the trade-offs and ask more sophisticated questions: • How does downsizing to cut costs affect absenteeism?

• Do the productivity losses negate the cost savings?

• What kind of spaces do our employees need to feel engaged and productive?

Instead of solely relying on “industry standard benchmarks,” we believe CRE teams will use their data to make choices and plans that are specific or custom to their workplace and employees.

Privacy and Data Security

Right now, CRE teams have more data at their fingertips than we could have imagined 20 years ago.

Discussing Big Data also means considering potential privacy and security implications. Right now, CRE teams have more data at their fingertips than we could have imagined 20 years ago, and it’s exciting to picture what will be possible as we learn how to best manage and use this data.

However, it’s important for companies to implement strong data governance and security policies to ensure the data they collect is protected. In the next few years, we think more tech companies will develop tools that provide actionable data without capturing personally identifiable information (PII).

Additionally, more employees may be willing to make that trade-off—allowing their employer to collect and use certain personal information—once they see how that data can be used for their best interests. With the value space utilization data promises for CRE, the use of it will only continue to grow.

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About Serraview Serraview is a global provider of workplace management solutions created to enable forward-thinking organizations to deliver today’s modern workplace. Our solutions are designed to increase real estate portfolio utilization, streamline operations, and enable smarter, more productive work environments. We believe the modern workplace is one that is good for business and great for people.

Good for business. Great for people.

Learn how Serraview can integrate your best-in-class data to produce robust analysis and help you meet your organization’s objectives.

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