SOLUTIONS

Downsizing office space

As more companies adopt hybrid work models, the need for physical office space is diminishing. It is the perfect moment for Real Estate and Facility managers to take advantage of rightsizing opportunities and commit to a small office space.

View our case studies

 

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9% companies surveyed by CBRE intend to significantly reduce their office footprint while 72% are planning for modest office space reduction.

Reasons to consider downsizing office space

Gone are the days when growing your organization entailed expanding your office’s size. As the hybrid work model is overtaking the corporate world, the future of office spaces is all about flexibility, convenience, and optimization.

Not sure if you are ready to cut back on office space yet? Here are some reasons why it’s a good idea both operationally and for your employees:

  • Increasing commercial real estate prices.
  • High office maintenance (supplies, utilities) costs.
  • Poor office utilization - office space demand is often lower than available workspaces.
  • 5/10 employees prefer hybrid work.
  • Money saved on a smaller office space can be used for a higher-quality space or employee development.
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How desk booking software can help to downsize office space?

Desk booking software can help you transition to a small office space by reducing the number of fixed workstations.

While traditional offices use a 1:1 ratio of people to desks, Knoll Workplace Research study reveals that the average ratio for companies that adopted flexible seating policies (for example, hot desking) is 2,3:1. In other words, more than double. Moreover, the study pinpoints that ratios tend to move even higher over time, as employees become more comfortable with new ways of working. So does your downsizing and saving potential – we summarized it in the table below.

 

How desk booking software can help to downsize office space?

Desk booking software can help you transition to a small office space by reducing the number of fixed workstations.

While traditional offices use a 1:1 ratio of people to desks, Knoll Workplace Research study reveals that the average ratio for companies that adopted flexible seating policies (for example, hot desking) is 2,3:1. In other words, more than double. Moreover, the study pinpoints that ratios tend to move even higher over time, as employees become more comfortable with new ways of working. So does your downsizing and saving potential – we summarized it in the table below.

 

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How room booking software can help you save real estate costs?

Room booking software can help to downsize and save real estate costs by optimizing your office space utilization.

Meeting and conference rooms have a large footprint in the traditional office – so large that on a typical workday, only 40% of rooms are actually used. The conclusion? Many companies own more office space than they need… and have higher real estate expenses than they should.

Of course, it is unrealistic to think that meeting space could be fully booked for every hour of each working day, representing 100% utilization – but a company should aim to reach at least 75% (YAROOMS efficiency).

How room booking software can help you save real estate costs?

Room booking software can help to downsize and save real estate costs by optimizing your office space utilization.

Meeting and conference rooms have a large footprint in the traditional office – so large that on a typical workday, only 40% of rooms are actually used. The conclusion? Many companies own more office space than they need… and have higher real estate expenses than they should.

Of course, it is unrealistic to think that meeting space could be fully booked for every hour of each working day, representing 100% utilization – but a company should aim to reach at least 75% (YAROOMS efficiency).

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Case study: how can a small office accommodate the growing number of employees?

In 2021, our customer Dedalus, the leading healthcare IT provider in Europe, relocated its office in Vienna to a new building with a smaller office space. Prior to the move, the majority of Dedalus’ staff had dedicated workstations or private offices. The company was also actively recruiting at the time, and the team quickly increased from 200 to 300 people.

What do you do when there aren't enough desks for everyone?

Dedalus decided to introduce a hot desking policy, asking employees to share workstations with others instead of having assigned desks. To succeed with flexible working in a downsized office, they needed a reliable desk booking solution. That’s where YAROOMS came in. Today, Dedalus operates in an office where the number of employees is two times higher than the number of available desks.

Read the full story >>

Case study: how can a small office accommodate the growing number of employees?

In 2021, our customer Dedalus, the leading healthcare IT provider in Europe, relocated its office in Vienna to a new building with a smaller office space. Prior to the move, the majority of Dedalus’ staff had dedicated workstations or private offices. The company was also actively recruiting at the time, and the team quickly increased from 200 to 300 people.

What do you do when there aren't enough desks for everyone?

Dedalus decided to introduce a hot desking policy, asking employees to share workstations with others instead of having assigned desks. To succeed with flexible working in a downsized office, they needed a reliable desk booking solution. That’s where YAROOMS came in. Today, Dedalus operates in an office where the number of employees is two times higher than the number of available desks.

Read the full story >>

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Insights to get you started

Choosing the office space management solution is no small feat. We collected a few insightful resources to help you identify your needs and navigate the sea of options. Continue your research:

Downsizing office space: FAQ

Many businesses need physical office space because it is a central hub for teamwork, connection, and building the workplace culture. The importance of the office is evergreen because it’s the best place to communicate a company's identity, ethos, and ideals, as well as experience its brand.

Despite the fact that more and more organizations are shifting to hybrid or remote workspaces, physical offices are here to stay. In the future, we can expect them to be smaller, more flexible, and employee centric. Functional office space will shift to a modern workplace designed for activity-based work, communication, and teamwork.

Many companies decide to downsize their office space because it is one of the most efficient cost-cutting strategies. At the same time, successful downsizing can help organizations increase productivity, employee retention, and foster a positive working environment.

Ready to downsize your office?