Glossary · Space planning & real estate

What is a company's real estate footprint?

Short answer

A real estate footprint is the total amount of space an organization occupies, owned or leased, across all its offices, floors and sites, usually measured in square feet or square meters. Leaders track it to understand what they pay for and where, and how closely it matches the number of people who use it.

Also called office footprint, portfolio footprint.

How it works

The footprint adds up every building, floor and suite the organization occupies, with its area, location, tenure (owned or leased), lease dates and cost. It is usually held in a lease administration system or portfolio register and summarized by region, building type and business unit.

Size alone says little. The footprint becomes useful when set against demand: how many people each site serves, how many attend on the busiest day, and what each square foot costs. That comparison shows where space is idle, where it is tight, and which sites are candidates for consolidation or growth.

Organizations change the footprint through consolidation, restacking, subleasing, relocation or new leases, usually timed to lease events. Because leases run for years, changes are planned well ahead, with scenario planning to test options against expected headcount and attendance.

How to measure it

  1. Total area by site, in one area standard (rentable or usable).
  2. Space per person and cost per seat by site, per employee and per person present.
  3. Occupancy and peak-day attendance by building and floor, from measured data rather than bookings.
  4. Lease expiry and break dates, so the footprint is mapped against when it can change.

Benchmarks

  • Karger cut its real estate footprint by 80% on measured occupancy.

    Kadence customer story: Karger
  • Across the largest 58 U.S. markets, CBRE found 23.3 million sq. ft. of office space slated for demolition or conversion by the end of the year of its report, against 12.7 million sq. ft. of new construction.

    CBRE press release, June 2, 2025

Common mistakes

  • Measuring the footprint without measuring use, so there is no way to tell well-used space from idle space.
  • Mixing rentable and usable area across sites.
  • Cutting space where leases happen to end rather than where evidence shows it is idle.

How Kadence helps

Kadence shows how each part of the footprint is used. Workplace Insights reports attendance, occupancy and heatmaps by building and floor from check-ins and presence signals. SpaceOps scenario planning and stack planning then test how teams would fit into a smaller or different footprint before a lease decision.

Frequently asked questions

How do you measure a company's real estate footprint?

Add the area of every building, floor and suite the company occupies, using one standard such as rentable or usable square feet, and record the location, tenure, lease dates and cost of each. Then compare it with headcount and measured attendance to see how well it is used.

How can a company reduce its office footprint?

Measure occupancy by site and day, find space that is idle even on the busiest day, then consolidate, restack or sublet at the next lease events. Desk sharing, team neighborhoods and coordinated office days let fewer desks serve the same people.

Why are companies shrinking their office footprints?

Hybrid work means fewer people are in the office on most days, so many portfolios hold more space than peak demand requires. Measured occupancy lets companies give back idle space and reinvest part of the saving in better space.

Is a smaller real estate footprint always better?

No. The aim is a footprint that fits how people work. Cutting below peak-day demand leaves people without desks or rooms, and some organizations add or upgrade space where collaboration needs it.

How much office space do we actually need for a hybrid workforce?

Size space for measured peak attendance, not headcount. Look at your busiest regular days over several months, allow for growth and visitors, then set desk ratios team by team. Check meeting rooms the same way, because hybrid teams can run short of rooms on busy days while desks sit empty.

  • Office right-sizing Matching the amount and type of office space to how people actually use it, based on measured demand rather than headcount.
  • Office consolidation Moving teams from several floors, buildings or sites into less space, then giving up or repurposing the space that is freed.
  • Real estate portfolio optimization Matching the buildings, floors and leases an organization holds to the space its people actually need.
  • Space per person Office floor area divided by the number of people it serves, in square feet or square meters per person.
  • Corporate real estate (CRE) The buildings and leases a company occupies for its own operations, and the team that plans and manages them.

Sources

  1. Office Conversions and Demolitions Will Exceed New Construction in 2025 For the First Time in Several Years, Aiding the Office Market Recovery, CBRE

Kadence editorial team · Last reviewed

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