Glossary · Occupancy & utilization

What is space utilization?

Short answer

Space utilization is a measure of how intensively a workplace's buildings, floors, rooms and desks are used against their full capacity over time: how often each space is used, and how full it is when it is. Real estate and workplace teams use it to judge how hard their space works and what to keep, consolidate or redesign.

Also called utilisation, utilization rate, office utilization, workspace utilization, building utilization.

How it works

Space utilization multiplies two things. Frequency is the share of available time a space is in use. Fullness is the share of its capacity filled while it is in use. A ten-person room in use half the working week, usually by four people, has a frequency of 50%, a fullness of 40% and a utilization of 20%.

It applies at every level, and each level answers a different question. Building and floor utilization compare the people present over time with the seats available, and drive lease, consolidation and restacking decisions. Room utilization shows whether rooms are the right size. Desk utilization, where capacity is one person, reduces to the share of desk-hours in use and drives desk ratios and neighborhood sizing.

It is not the same as occupancy. Occupancy asks whether a space is in use: the share of desks, rooms or area in use at a point in time or on average. Utilization asks how much of the capacity-time is used. A building can have someone on every floor and in every meeting room while most of its seats sit empty.

Utilization is a pattern, not a snapshot. Measure it over several weeks, by day and by hour, from presence signals such as check-ins, network presence, badge swipes or sensors rather than bookings, and report it alongside peak occupancy, since the busiest normal day sets the capacity you need.

Formula

Space utilization = (Seat-hours used ÷ Seat-hours available) × 100

Seat-hours used
For each space, the hours it was in use multiplied by the number of people using it, summed over the period. For a desk this is simply the hours it was used.
Seat-hours available
Each space's seats multiplied by the hours it was open and bookable in the same period, excluding closed or out-of-service space.

Worked example · illustrative figures

  1. A ten-person meeting room is bookable 40 hours a week: 10 × 40 = 400 seat-hours available.
  2. It is in use for 20 hours, with an average of 4 people each time: 20 × 4 = 80 seat-hours used.
  3. 80 ÷ 400 = 0.20.

Utilization: 20%. The room is in use half the week (frequency 50%) but only 40% full when it is.

How to measure it

  1. Choose the level (building, floor, space type) to match the decision, and the time grain (hour, day, week) before you compare sites.
  2. Use presence signals for use: check-ins, network presence, badge or sensor data. Keep bookings as a separate measure of intent.
  3. For rooms, report frequency and fullness separately, so you can tell 'rarely used' from 'used by too few people'.
  4. Break results down by weekday, floor and team, and show the peak day next to the average.

Examples

  • A building with 1,000 seats open 50 hours a week has 50,000 seat-hours available. Presence data shows 17,500 used: 35% building utilization, with two floors far below the rest that become consolidation candidates.
  • An eight-person boardroom used most afternoons by two or three people scores well on frequency but poorly on utilization; two smaller rooms would fit the demand better.

Benchmarks

Common mistakes

  • Using occupancy and utilization as synonyms, then comparing figures built on different definitions.
  • Measuring one 'representative' day or week. Utilization changes with policy, season and headcount.
  • Averaging desks, rooms and floor area into one building figure, which hides desks sitting empty while rooms are overbooked.
  • Building utilization on bookings instead of check-ins or other presence data.

How Kadence helps

Kadence Workplace Insights reports occupancy, attendance, no-shows and office heatmaps from check-ins, with CSV export for your own utilization models. Check-ins come from the apps, kiosks, room displays, badge data, the API or the Kadence Agent, which checks people in when it detects them on the office network. Automatic Bookings records people who arrive without a booking. SpaceOps uses the same data as the input for stack and scenario plans.

Frequently asked questions

What is a good office utilization rate?

There is no universal target. The right rate depends on your attendance policy, how much headroom you want on the busiest day and your mix of desks and rooms. Look at the peak day as well as the average: a building can average well below capacity and still run out of desks midweek.

How do you calculate space utilization?

Divide the seat-hours used by the seat-hours available over the same period, then multiply by one hundred. For desks, that is the share of available desk time actually used. For rooms, it combines how often the room is used with how many of its seats are filled when it is.

What is the difference between utilization and occupancy?

Occupancy is the share of available desks, rooms or area in use, at a point in time or on average. Utilization is the share of available capacity-time actually used: how often spaces are used multiplied by how full they are. A six-person room booked by one person every afternoon is occupied every afternoon but poorly utilized.

Why is office utilization data often unreliable?

Most unreliable figures come from bookings or one-off counts. Bookings include reservations nobody used, and a single audit day rarely represents a hybrid week. Reliable utilization uses presence signals such as check-ins, network presence or badge data, measured continuously and broken down by day and space type.

Is utilisation the same as utilization?

Yes. Utilisation is the British spelling and utilization the American one; both mean how intensively space is used against its capacity over time. Check how a report defines the measure, though, because some use utilization loosely for what is really occupancy, the share of space in use.

  • Occupancy vs utilization Occupancy is the share of space in use; utilization is the share of capacity-time actually used.
  • Occupancy rate The share of available desks, rooms or floor area in use, at a point in time or on average over a period.
  • Desk utilization The share of available desk-hours people actually use, measured desk by desk from check-ins or presence data.
  • Meeting room utilization How often meeting rooms are used and how full they are when used, which shows whether you need more rooms or different ones.
  • Peak occupancy The busiest level of use a floor or building reaches in a normal week, which sets the capacity you actually need.
  • Cost per seat The total annual occupancy cost of an office divided by the seats it provides, or by the seats actually used.

Sources

  1. The Hybrid Reality: Why the Office Is More Important Than Ever, CBRE

Kadence editorial team · Last reviewed

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