What is space occupancy?
When people talk about space occupancy, they usually mean the amount of space in a space portfolio that is allocated to specific departments compared to its capacity. For instance, if a space portfolio has a capacity of 900 workspaces, and 720 are occupied through allocation, a quick calculation identifies that the space occupancy rate is 80%.
However, this simple metric of measuring workspaces does not tell you anything about your actual space capacity, as you lack insight into whether your space is really being used. In reality, spaces are hardly ever occupied for the entire day, so in the end, space occupancy based on space allocation alone does not give you the information you need to execute your space management strategy.
What is space utilisation?
Space utilisation refers to how often and for how long a space is actually used. Under-utilisation of space remains a real problem for many organisations. Study after study, including JLL’s 2017 ‘Occupancy Benchmarking Guide’, has shown that office space is typically used between 60% and 70% of the time. This means that most organisations are spending money on services, cleaning, heating, and cooling for spaces that are empty 40% of the time.
Under-utilisation is not the only problem - utilising space for a different purpose to what was intended is also an issue. Think, for example, of two people occupying a large meeting room for a quick conversation to discuss tasks, while a large department is forced to use a smaller room that lacks the required number of chairs for a team meeting. Having detailed information available about not only how often and for how long a space is used, but also by how many people and for what purpose helps Facility and Space Managers to address the true need for space.