How Much Office Space Do You Actually Need in a Hybrid Workplace?

Your company has 300 employees, 300 workstations and a commercial office lease. But on a typical Tuesday, only 180 employees come into the office. By Friday, that number drops to 75.

Do you still need 300 workstations? Probably not.

But does that mean you can immediately reduce your office space by 40%? Not necessarily.

Hybrid work has changed how organisations use their offices, but many still plan their workplaces around traditional headcount-based assumptions. Facilities managers now need to account for fluctuating attendance, shared workstations, meeting room demand, collaboration areas, lease commitments and future headcount.

And with office space representing a significant operating expense, getting those calculations wrong can leave organisations paying for underused space or struggling with overcrowding on peak attendance days. The answer isn't simply to reduce desks. It's to understand how much office space your organisation actually uses, when it needs that space and whether your existing workplace can support those requirements efficiently.

Here's how to calculate your hybrid workplace requirements using practical capacity planning methods.

Why Traditional Office Space Planning Doesn't Work for Hybrid Work

Traditional office planning assumed that most employees would attend the workplace throughout the working week.

A business with 200 office-based employees might provide approximately 200 workstations, alongside meeting rooms, kitchens, breakout spaces and other facilities.

Hybrid work changes that relationship. Employees may work from home two or three days a week, visit the office primarily for collaboration or attend on designated team days.

The result is uneven workplace demand. Consider a professional services organisation with 250 employees.

The average daily attendance is 147 employees, or 58.8% of headcount.

But Wednesday requires capacity for 210 employees. If the organisation planned its workplace around average attendance alone, it could underestimate peak demand by 63 workstations, assuming every attending employee needs one.

Conversely, maintaining 250 dedicated workstations could leave substantial capacity unused for much of the week. This is why hybrid office space planning should be based on attendance patterns, rather than total headcount or average occupancy alone.

Five Metrics to Measure Before Reducing Office Space

Before changing your floorplan, negotiating a smaller tenancy or introducing desk sharing, establish how your workplace is currently being used.

1. Average Daily Office Attendance

Average attendance measures the number of employees who typically work from the office on a given day.

For example, if 150 employees attend daily out of a workforce of 300, the average attendance rate is 50%.

This is useful for identifying overall workplace demand, but it should not be used as the sole basis for determining workstation capacity.

2. Peak Attendance

Peak attendance measures the highest number of employees who attend during a representative period. For hybrid workplaces, peak attendance is often the more important capacity planning metric.

An organisation might average 55% attendance across the week but regularly reach 85% on Tuesdays and Wednesdays. Facilities teams should analyse several months of representative attendance data where available, including team days, seasonal patterns and changes in workplace policy.

For capacity planning, a representative high-demand percentile can sometimes be more useful than a single exceptional maximum. However, mandatory all-staff attendance days still need separate consideration.

3. Workstation Utilisation

Workstation utilisation helps organisations understand how effectively available desks are being used. A basic point-in-time occupancy calculation is:

For example, if 120 of 200 workstations are occupied, workstation occupancy is 60% at that time. However, a booked workstation is not necessarily an occupied workstation.

An employee may reserve a desk but work from home. Another may attend the office but spend most of the day in meetings. For reliable space planning, distinguish between reservations, check-ins and observed physical occupancy.

4. Desk-Sharing Ratio

The desk-sharing ratio measures how many employees share the available workstations.

If 180 employees share 120 workstations, the desk-sharing ratio is 1.5 employees per workstation.

A higher ratio may be workable when employees attend on different days. But if most employees come in on Tuesday, Wednesday and Thursday, a seemingly efficient desk-sharing arrangement can create shortages. The right ratio depends on actual attendance distribution, rather than a universal benchmark.

5. Meeting Room and Collaboration Space Utilisation

Reducing the number of individual workstations doesn't necessarily reduce the total floor area your organisation requires.

Hybrid employees may attend the office specifically for meetings, project workshops, training and collaboration. A workplace with underused desks might still experience high demand for meeting rooms, private call spaces and shared project areas.

Facilities teams should assess both workstation demand and the utilisation of supporting spaces before redesigning their office.

How to Calculate the Number of Workstations Your Hybrid Office Needs

Let's consider an organisation with 300 employees.

Its facilities team has reviewed attendance patterns and established the following planning assumptions.

For this example, assume all 20 employees with assigned workstations are included in the 210-person peak.

Step 1: Calculate Shared Workstation Demand

Subtract employees who require assigned workstations from peak attendance.

210 − 20 = 190 employees requiring shared workstations.

Step 2: Apply a Capacity Allowance

Planning for 100% workstation occupancy leaves no flexibility for booking variations or operational requirements. For this example, we'll use a 90% target peak occupancy rate. This is a modelling assumption, not a prescribed standard.

Round up to 212 shared workstations.

Step 3: Add Assigned Workstations

212 shared workstations + 20 assigned workstations = 232 total workstations.

Step 4: Compare With Existing Capacity

300 − 232 = 68 workstations.

Under these assumptions, the organisation could potentially release 68 workstations, a reduction of approximately 22.7%. But removing 68 workstations doesn't automatically mean reducing the leased office area by 22.7%. That requires a separate assessment of the floorplate, supporting facilities, lease arrangements and space allocation.

How Many Square Metres of Office Space Do You Need Per Employee?

Once you've calculated your workstation requirements, the next step is estimating how much physical floor area your organisation needs. Commercial office space is commonly measured in square metres (m²), and leasing discussions frequently use net lettable area (NLA).

NLA represents the area of a tenancy measured according to applicable commercial property measurement conventions. It can include office work areas and supporting spaces such as breakout areas and kitchenettes, while excluding certain common building areas.

It's important to distinguish between three measurements:

• Workstation area: The physical space allocated to individual desks and their immediate working environment.
• Usable office area: The workplace area available for office activities, including relevant supporting spaces.
• Net lettable area: The tenancy area used for commercial property measurement and often for leasing purposes.

These figures are related, but they aren't necessarily identical.

What Is a Reasonable Office Space Allowance Per Employee?

The Commonwealth Property Management Framework uses an occupational density target of 14 m² of usable office space per occupied workpoint for applicable Commonwealth office accommodation of at least 500 m².

The Australian Government's 2025 Office Occupancy Report recorded a national occupational density of 12.5 m² and fit-out density of 13.3 m² per workpoint across the reported Commonwealth portfolio.

These figures provide useful reference points, but they are not universal minimum space requirements or mandatory planning targets for private businesses. A law firm requiring private offices, a technology company with collaborative team areas and a government department with shared workstations may have substantially different space requirements.

Example: Calculating Office Floor Area for 232 Workstations

Using our earlier example, assume the organisation requires 232 workstations. For preliminary modelling, we'll compare three hypothetical fit-out density allowances.

These figures are illustrative scenarios rather than recommended fit-out standards.

The calculation is: Estimated office area = Workstations x Area Allowance

For the balanced scenario: 232 × 14 m² = 3,248 m².

This gives the organisation a preliminary usable-area estimate for discussion with its workplace designer or property adviser. It does not establish the exact NLA required for a particular tenancy.

The final requirement must account for meeting rooms, circulation, accessibility, amenities, building configuration and the actual fit-out design.

What Workplace Research Tells Us About Hybrid Office Space

Workplace research suggests that desk sharing is already well established, but that doesn't mean every organisation should automatically reduce its office footprint.

According to CBRE's 2025 Australian Office Occupier Survey:

The survey also found that 58% of office occupiers expected attendance rates to continue improving. This creates an important planning challenge.

An office that appears underused today may face greater demand if attendance increases, hybrid policies change or the organisation expands. For facilities and property teams, the implication is clear: office planning should account for both utilisation efficiency and the quality of the workplace experience.

Why Reducing Workstations Doesn't Automatically Reduce Your Office Rent

Suppose your organisation leases a 4,000 m² office tenancy. After analysing attendance patterns, the facilities team determines that 20% of its workstations could be removed.

It's tempting to assume that this could produce a corresponding reduction in property expenditure. But commercial leases don't work that way. If the organisation remains committed to the same 4,000 m² tenancy, removing desks won't automatically reduce the area for which it pays rent.

To achieve a reduction in leased area, the organisation may need to consider:

1. Consolidating Floors or Tenancies

An organisation occupying multiple floors may be able to consolidate teams into fewer areas when lease terms and building configurations permit. However, consolidation may require relocation costs, new fit-outs and changes to workplace arrangements.

2. Subleasing Surplus Office Space

Where permitted under the lease, subleasing may help offset the cost of underused space. The viability of this approach depends on the tenancy configuration, landlord consent requirements and demand for the available area.

3. Renegotiating at Lease Renewal

Lease expiry can create an opportunity to reassess floor area, location, rental terms and future capacity. Reliable workplace utilisation data can strengthen the business case for a smaller tenancy or different configuration.

4. Repurposing Existing Space

Not every organisation needs to reduce its lease commitment. Some may achieve greater value by converting underused workstation areas into meeting rooms, focus spaces, training facilities or collaborative work zones.

The objective should be to improve the return on workplace expenditure, not simply minimise the number of desks.

How to Estimate the Financial Impact of Reducing Office Space

Consider an organisation exploring whether it could reduce its leased office area by 500 m² at its next lease renewal. Assume an illustrative annual base rental rate of A$750 per m².

The calculation is: 500 m² × A750=A375,000 per year.

These are hypothetical figures, not a current rental benchmark.

Actual financial outcomes depend on the market, lease incentives, outgoings, fit-out costs, make-good obligations, relocation expenses and whether the organisation can genuinely reduce its tenancy. A property adviser should validate the commercial assumptions before the figures are used in a lease decision.

The calculation demonstrates why accurate workplace capacity planning can have implications beyond desk allocation.

Don't Overlook Building and Workplace Requirements

Space efficiency should never come at the expense of safety, accessibility or the suitability of the working environment. When redesigning an office, organisations should consider the requirements applicable to their building and jurisdiction, including:

• The National Construction Code (NCC) and applicable building classification, occupancy and access provisions.
• Work health and safety requirements under relevant Commonwealth, state or territory legislation.
• Accessible circulation routes, facilities and workstation arrangements.
• Fire safety, emergency evacuation and building services.
• Appropriate ventilation, lighting and workplace ergonomics.

An office's legal occupancy capacity is not the same as the number of workstations that can physically fit within a floorplate. Before implementing a substantial workplace redesign, seek appropriate advice from building professionals and confirm the applicable local requirements.

How to Decide Whether to Reduce, Redesign or Expand Your Office

The right workplace strategy depends on what your utilisation data reveals.

For example, an office might have low overall attendance but high demand for meeting rooms on Wednesdays. Removing workstations without reviewing room utilisation could make the employee experience worse.

Similarly, an office may have sufficient overall capacity but poor visibility into which desks are available on each floor. In that case, the problem may be workplace coordination rather than insufficient space.

This is why organisations need both capacity planning and effective workplace management.

How OfficeMaps Helps You Manage Hybrid Office Space

Calculating the right number of workstations is only part of the process.

The next challenge is managing those workstations, understanding resource availability and ensuring employees can use the workplace effectively. OfficeMaps brings interactive office maps, desk and room booking, parking management, employee location information and workplace reporting into one platform.

These capabilities help organisations manage shared workspaces and coordinate workplace resources across teams and locations.

Visualise Your Workplace With Interactive Floor Plans

OfficeMaps helps organisations represent desks, meeting rooms, employees and workplace facilities through interactive office maps.

Facilities teams can use these maps to understand how resources are allocated and how different areas are organised. For multi-floor or multi-location organisations, this provides a clearer view of the workplace than disconnected spreadsheets and static floor plans.

Manage Shared Workstations

When employees don't require permanently assigned desks, desk booking helps coordinate workspace availability.

Employees can find and reserve available workstations, supporting hybrid arrangements where desks are shared across different working days. This can make it easier to implement the desk-sharing arrangements identified through capacity planning.

Coordinate Meeting Rooms and Parking

A hybrid workplace needs more than desk availability. Employees may also need access to meeting rooms, parking spaces and other shared resources.

OfficeMaps supports these workplace management requirements, helping organisations coordinate resources through a connected platform.

Support Workplace Planning With Better Resource Visibility

OfficeMaps' workplace management and reporting capabilities can help organisations review resource allocations and booking information. These insights can contribute to decisions about workplace layouts, desk-sharing arrangements and resource demand.

For a comprehensive physical occupancy study, organisations should also validate booking information against suitable attendance or occupancy data.

Connect Workplace Management With Microsoft Systems

For organisations using Microsoft 365, OfficeMaps supports integrations with Microsoft workplace and identity systems. This can help reduce the need to manage employee and scheduling information separately from the tools already used across the organisation.

Manage Offices Across Multiple Locations

Organisations operating across multiple offices may have different attendance patterns and space requirements at each location.

OfficeMaps helps employees locate workplace resources and supports consistent management of workplace information across offices. Rather than treating every office as an isolated collection of desks, organisations can manage their workplace resources through a more connected approach.

Want to make better use of your existing office space? Explore how OfficeMaps supports interactive office mapping, desk booking and workplace resource management.

A Practical Checklist Before Changing Your Office Footprint

Before making a decision about your workplace, confirm that you can answer these questions:

• What is our average and peak office attendance by weekday?
• How many employees genuinely require assigned workstations?
• Which desks, meeting rooms and collaboration areas are regularly used?
• Are reservations representative of actual workplace occupancy?
• How will hiring plans and hybrid attendance policies affect future demand?
• Can our existing floorplate support a more efficient layout?
• What are the financial implications of our current lease commitments?
• Do we have the workplace management systems needed to support shared workstations?

If these questions cannot be answered confidently, reducing office space may be premature. The first priority should be improving visibility into workplace demand.

Final Thoughts: The Right Office Size Is the One That Supports How Your Organisation Works

Hybrid work hasn't eliminated the need for physical offices. It has changed how organisations should plan and manage them.

The right amount of office space depends on peak attendance, workstation sharing, collaboration requirements, tenancy arrangements and future workforce needs.

An organisation with 300 employees may not need 300 workstations. But reducing that number without understanding attendance patterns and operational requirements can create new problems.

Start by measuring workplace demand. Calculate workstation requirements using representative peak attendance. Review the space required for meetings and collaboration. Then assess whether your current tenancy can accommodate a more efficient workplace arrangement.

And once you've established the right capacity, make sure employees can actually find and use the spaces available to them. OfficeMaps helps organisations manage the workplace behind those decisions, from interactive office maps and shared workstations to meeting rooms, parking and employee location information.

Frequently Asked Questions

How much office space do you need per employee?

There is no universal requirement. The amount depends on workplace design, occupancy, supporting facilities and applicable regulations. For context, the Commonwealth Property Management Framework uses a 14 m² occupational density target for applicable Commonwealth office accommodation, but private organisations should calculate their requirements based on actual workplace needs.

How many desks do you need for 100 hybrid employees?

If representative peak attendance is 70 employees and your target peak workstation occupancy is 90%, you would need approximately 78 shared workstations, assuming every attending employee needs a desk and none requires a separately assigned workstation.

What is a good desk-sharing ratio for a hybrid office?

The appropriate ratio depends on attendance patterns. CBRE's 2025 Australian Office Occupier Survey reported an average of 0.7 desks per employee among respondents, equivalent to approximately 1.43 employees per desk. This is a market observation rather than a recommended ratio for every organisation.

What is the difference between office occupancy and utilisation?

Office occupancy typically measures how many people or workstations are occupied at a particular time relative to capacity. Utilisation can also account for how frequently or for how long a space is used.

Can hybrid working reduce commercial office rental costs?

Potentially. Hybrid work can create opportunities to reduce leased area through consolidation, relocation, subleasing or lease renegotiation. However, removing workstations alone doesn't reduce existing rental commitments.

What is net lettable area in commercial property?

Net lettable area (NLA) is a standard measurement of commercial tenancy space expressed in square metres. It generally includes office and supporting tenancy areas while excluding specified common building spaces.

How can workplace management software help with office space planning?

Workplace management software can help organisations understand resource allocation, manage shared workstations, coordinate meeting rooms and maintain workplace information. Booking and resource data can support space planning, although physical occupancy may require additional validation.