Office space remains one of the largest ongoing operational expenses for many organisations. Yet, the way businesses utilise that space has changed dramatically in recent years. The rise of hybrid working, evolving employee expectations, and shifting commercial property trends mean that traditional approaches to determining space requirements are often no longer fit for purpose.
An accurate and current understanding of your occupancy needs is essential to achieving lease efficiency. Reviewing and optimising space requirements can reduce costs, improve utilisation, and ensure your workplace truly aligns with how your business operates. An expert tenant advisor can support you through this process and deliver clear, actionable insights.
Book a meeting with our team today.
Why are traditional space requirement models less effective?
Traditional office space requirements were determined using fixed ratios, such as a set number of square metres per person, often with a small buffer for projected growth. While this approach once made sense, it fails to account for the modern realities of workplace design and utilisation.
Today’s offices are far more dynamic.Â
Staff are working remotely several days a week, meeting rooms are used differently, and technology now supports more flexible work patterns. Applying outdated, rigid space ratios to a modern workforce often results in leases for spaces that are too large, too small, or poorly configured. This all leads to significant inefficiency and increased costs.
There are several key reasons traditional models are losing relevance:
- Hybrid working patterns: Office occupancy rates fluctuate daily. Static calculations based on full-time attendance significantly overestimate true space requirements.
- Collaboration spaces vs. desk allocation: Many contemporary offices now prioritise shared zones, meeting hubs, and breakout areas over dedicated individual desks. Old models do not accurately reflect this essential balance.
- Business flexibility: Rapid organisational changes, such as mergers, technology upgrades, or strategic shifts, can quickly and dramatically alter space needs.
- Rising property costs: With commercial rent and outgoings representing a substantial expense, any inefficiency in occupied space has an immediate and direct financial impact.
To manage these factors effectively, organisations must adopt a more strategic, data-driven approach to reviewing their occupancy and lease commitments.
How to review your occupancy needs
A comprehensive review of your space requirements begins with an objective assessment of how your business actually utilises its office environment. This process should combine detailed data analysis, workplace observation, and workplace strategy planning. The core goal is to match your physical footprint to the realities of your workforce and operational model.
The key steps in this process look like this:
- Analyse current utilisation: Employ occupancy sensors, booking data, or structured manual observation to understand how workstations, meeting rooms, and breakout areas are used throughout the week. This establishes a clear, evidence-based baseline for comparison.
- Assess employee behaviour and attendance patterns: Hybrid work policies, remote flexibility, and team collaboration habits all profoundly influence space needs. Understanding staff flow is critical to informed right-sizing.
- Review business structure and growth plans: Consider future staffing, business functions, and potential expansions or contractions. Your lease strategy must possess the flexibility to adapt as the business evolves.
- Evaluate layout efficiency: The correct layout can significantly maximise usable space without increasing the overall footprint. Identifying underutilised areas or redundant spaces often reveals hidden, additional capacity.
- Benchmark against best practice: Comparing your current ratios against modern benchmarks and industry standards helps ensure your resulting space requirements reflect contemporary office performance expectations.
We can conduct an in-depth audit of your space
At Niche Advisory, we conduct detailed occupancy audits that go beyond just simple, surface-level analysis. Our expert consultants assess how your teams use space on a daily basis, evaluate the suitability of your existing lease commitments, and model multiple occupancy scenarios based on your office.
We’ll analyse metrics such as peak utilisation, headcount forecasts, meeting room ratios, and workstation allocation to identify opportunities for optimisation. Our team will also assess how your space requirements align with current market conditions across major Australian cities, providing data-backed recommendations for re-negotiation, consolidation, or re-configuration.
The outcome is a clear, actionable plan that supports your business goals, reduces space wastage, and ensures your current lease is aligned with your operational realities.
How a space review improves lease efficiency
When your leased area accurately reflects how your business operates, you reduce unnecessary costs and avoid paying for space that sits unused.
The process also provides greater flexibility, allowing you to negotiate terms that provide additional support for future change, such as subleasing options or shorter commitments. Data-driven insights ensure you can make decisions with confidence and secure terms that match your operational priorities.
A workspace aligned with genuine occupancy needs enhances productivity and employee wellbeing, creating an environment that supports collaboration and efficiency. When design and function are closely matched, your office becomes a more effective tool for performance, particularly when you determine a robust workplace strategy.
When armed with detailed knowledge about your space usage, you enter negotiations from a position of strength, supported by high-quality evidence that justifies your requirements and desired terms. Optimising your space also delivers extensive sustainability-related benefits by reducing energy use and waste.
Reviewing your space requirements can uncover substantial savings while improving the overall quality and functionality of your workplace.
Book a meeting with Niche Advisory today
At Niche Advisory, we specialise in helping commercial tenants make confident, data-backed property decisions. Whether you are renewing an existing lease, planning a relocation, or simply seeking greater efficiency in your current premises, understanding your space requirements is an essential first step.
Our consultants are here to provide independent, tenant-focused advice supported by deep market knowledge and practical experience across all major CBD markets.