Real estate decisions—whether to lease, consolidate, renovate, or optimize—depend on understanding how people actually use space. When utilization data is missing, incomplete, or misleading, organizations routinely make costly mistakes: overpaying for unused area, misallocating amenities, or creating environments that frustrate occupants. This article explains the common decision failures caused by poor utilization data and shows how Butlr’s privacy-first people sensing and spatial intelligence can correct course.
What is utilization data and why it matters
Utilization data refers to recorded information about how physical space is used over time.
- Utilization: The percentage of time a space is occupied or actively used during a given period.
- Occupancy: The count of people present in a space at a specific time.
- People sensing: Technology that detects the presence and movement of people without necessarily identifying individuals.
- Spatial intelligence: Analytics derived from occupancy and movement patterns that inform space planning and operations.
Accurate utilization data enables decisions about right-sizing footprints, allocating rooms, scheduling cleaning, and managing energy. Without it, decisions rely on anecdotes, biased surveys, or outdated assumptions.
How missing or inaccurate utilization data leads to wrong decisions
Organizations often make four types of errors when they lack reliable utilization data:
1. Overestimating space needs
- Unnecessary leases and higher rent.
- Excess maintenance and cleaning costs.
- Wasted capital on furniture and fit-outs.
Example outcome: Choosing a larger office to "future-proof" without evidence of sustained demand.
2. Underutilizing existing inventory
- Bookable rooms remain empty or double-booked.
- Collaboration zones sit underused while other areas crowd.
- High-value locations are poorly allocated to teams that don’t need them.
This misallocation reduces productivity and pushes organizations into suboptimal leasing decisions.
3. Poor operational and facilities planning
- HVAC and lighting run on rigid schedules, wasting energy.
- Cleaning staff deploy resources inefficiently, raising costs.
- Security and visitor management are reactive rather than proactive.
The result is both higher operating expenses and a worse occupant experience.
4. Flawed strategic portfolio moves
- Selling, acquiring, or consolidating assets based on incomplete snapshots.
- Misjudging which markets need more or less space.
- Failing to detect long-term shifts such as hybrid work adoption.
This can lead to premature disposals, missed opportunities, or locked-in inefficiencies for years.
Common data pitfalls that produce inaccuracy
Understanding why data goes wrong helps prevent it:
- Sampling bias: Relying on one-off surveys or voluntary check-ins that don’t represent daily behavior.
- Temporal blind spots: Measuring only during business hours or on certain days, missing off-peak or flexible usage.
- Granularity gaps: Having building-level counts but no room- or desk-level resolution.
- Privacy constraints: Avoiding sensors that collect useful signals because of privacy concerns—resulting in no measurement at all.
- Manual logging errors: Desk booking systems show reservations, not actual presence.