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Space utilization describes how actively and efficiently real estate is used over time. It is commonly measured as occupancy (how many people are present) and utilization rate (the percentage of time a desk, room, or area is used during business hours).

Why it matters

Technical terms

The financial impact of poor utilization is rarely obvious on a monthly P&L. Instead, it appears as smaller, recurring drains across multiple line items that compound over time, raising cost per employee and lowering return on real estate investment.

These small, ongoing drains add up to higher cost per employee, lower return on real estate investment, and reduced competitiveness.

Many organizations rely on incomplete or invasive approaches to track space usage. These methods produce blind spots or generate data employees distrust, so optimization initiatives lack accuracy and stakeholder buy-in.

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