Office Space Planning in 2024: Why Companies Are Using Less Space Per Employee
Overview
One of the most important—and often misunderstood—shifts in the office market is not where companies are leasing space, but how much space they are allocating per employee.
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Office Space Planning in 2024: Why Companies Are Using Less Space Per Employee
In 2024, space planning assumptions that once guided office leasing decisions are no longer valid. Hybrid work, desk sharing, and flexible scheduling have permanently reduced the amount of square footage companies require, reshaping leasing strategies across markets.
How Space-Per-Employee Has Changed
Historically, companies planned office space using benchmarks of 200–250 square feet per employee. Today, that number has fallen meaningfully as organizations adapt to new attendance patterns.
Many tenants are now planning closer to:
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125–175 square feet per employee
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Shared workstations and hoteling models
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Fewer dedicated private offices
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Greater emphasis on collaboration and meeting space
This shift allows companies to maintain high-quality offices while materially reducing their overall footprint.
Hybrid Work’s Role in Space Efficiency
Hybrid work has accelerated this trend. While most companies still value in-person collaboration, daily attendance is no longer universal.
As a result:
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Offices are designed for peak days, not full occupancy
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Space utilization is optimized rather than maximized
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Tenants avoid paying for underused square footage
This approach has become a core driver of office downsizing and lease restructuring.
Implications for Office Leasing Decisions
Reduced space requirements have created both opportunities and challenges for tenants.
On the opportunity side:
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Smaller footprints allow access to better buildings
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Occupancy cost savings can be redirected toward quality
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Lease flexibility improves negotiating leverage
On the challenge side:
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Poor planning can lead to overcrowding on peak days
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Layout mistakes are expensive to fix
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Underestimating future growth limits flexibility
Thoughtful space planning is now one of the most important components of a successful office lease.
What Office Tenants Should Be Thinking About
Tenants considering a move or renewal should focus on functionality over size.
Key considerations include:
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Realistic attendance modeling
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Long-term growth assumptions
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Flexibility for future reconfiguration
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Alignment between space design and company culture
Space efficiency is no longer about doing more with less—it’s about designing space that actually works.
Written by:
Graham Perry
Senior Director specializing in tenant representation, office leasing strategy, and healthcare real estate transactions.
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