Optimising Office Space

Optimising Office Space

With hybrid working in full swing, companies are re‑evaluating the role of the office and rethinking the purpose and design of their space — shifting from static workspaces to dynamic environments that drive productivity, wellbeing, and flexibility. This article looks at a holistic approach to office space optimisation, from upsizing, to downsizing or rightsizing to create an environment perfectly tailored to current and future needs.

This report explores how UK businesses can align their physical environments with modern work practices, including hybrid schedules and activity‑based layouts—ensuring every square foot, whether reduced, expanded, or optimally balanced, serves a clear purpose in supporting people and business goals.

What is Office Space Optimisation and Why Do It?

Office space optimisation is the deliberate process of aligning your physical workspace with actual usage and evolving business needs. Traditionally seen as downsizing—removing underutilised areas to create lean, cost‑effective environments—today’s approach also recognises the value of upsizing and rightsizing.

Downsizing focuses on eliminating surplus space to drive efficiency and reduce overheads. By removing areas that aren’t frequently used, companies can significantly lower rent, utilities, and maintenance expenses. The focus here is often on a hybrid strategy where some staff are working from home and others are the office.

Upsizing addresses scenarios where growth or new operational demands require additional space. It is not about indiscriminate expansion but rather adding functional areas—such as innovation hubs or collaborative zones—that support emerging business needs.

More frequently the combination of these strategies is referred to as rightsizing is the art of striking the perfect balance. It involves a critical assessment of current and projected space requirements to design an office that is neither too large nor too small. By integrating rightsizing into the optimisation strategy, companies ensure that every square metre contributes effectively to productivity, collaboration, and employee wellbeing.

In today’s hybrid world, where only a fraction of the office is actively used, this comprehensive approach allows organisations to realise significant cost savings, improve operational efficiency, and create agile, people‑focused environments that can scale up or down as business needs evolve.

Cost Savings: Cutting Costs Without Sacrificing Growth

Office space optimisation is not merely about reducing square footage—it is a strategic move that unlocks substantial financial benefits while supporting growth. Whether through downsizing, upsizing, or rightsizing, aligning your workspace with actual usage can dramatically reduce overheads and free up capital for reinvestment.

1. Rent Reduction and Real Estate Overheads:
In prime UK markets like London, office rents can be as high as £150 per square foot annually. By strategically downsizing or rightsizing by 20–30%, organisations can proportionately reduce rental expenditure and associated costs while still maintaining the aesthetic they want in their office space.

2. Lease Negotiation and Flexible Contract Terms:
Cost savings aren’t achieved by space reduction alone. Strategic lease negotiations that incorporate break clauses, contraction rights, and sublease privileges ensure that real estate costs remain aligned with evolving needs—whether you’re scaling down or expanding.

3. Lower Utilities and Operational Costs:
With fewer square feet to heat, cool, and light, a downsized or rightsized space directly reduces energy consumption. In many cases, a 25–30% reduction in area yields a similar drop in utility bills. Upsizing in critical areas can also be designed with energy-efficient systems, ensuring cost-effective expansion.

4. Maintenance, Cleaning, and Facilities Management:
A smaller or optimally balanced space naturally incurs lower operating expenses for cleaning, security, and repairs. Even modest reductions in space can lead to significant savings in maintenance costs.

5. Strategic Reinvestment of Savings:
The funds saved through optimisation are not merely cost-cutting measures—they represent opportunities for reinvestment. Savings can be redirected into technology upgrades, employee engagement initiatives, and sustainability projects that foster long-term growth.

6. Modelling and Benchmarking for Continuous Improvement:
A data‑driven approach to space management, including regular reviews of the Total Cost of Occupancy (TCO) and benchmarking against industry standards, enables continuous identification of cost-saving opportunities. This proactive monitoring helps ensure that your office space remains perfectly aligned with your business objectives.

In short, optimising your office space—whether through downsizing, upsizing —creates a resilient and agile workspace. This strategic approach not only reduces overheads but also enables reinvestment in the core strengths of your business, fueling innovation, employee wellbeing, and sustainable growth.

The Shifting Nature of Office Use in the UK

Office use in the UK is undergoing a profound transformation. Hybrid working is now mainstream – a recent CIPD study found that 83% of organisations have implemented hybrid work models, with most employees coming into the office only 2–3 days per week. This shift has led to a significant number of unoccupied desks and underutilised areas.

In response, more than half of British firms have embraced hot‑desking policies, replacing permanent workstations with unassigned seating. In fact, 56% of UK employees now work at hot‑desks compared to 48% globally, meaning nearly 40% of dedicated desks go unused on a typical day. The drive toward flexible workspaces is redefining how office space is planned and used.

As companies adopt hybrid and flexible work models, traditional rows of fixed desks are being replaced with agile layouts. Offices are now designed as multi‑use environments with zones for quiet focus, collaborative meetings, and casual drop‑in work—maximising the efficiency of every available square metre.

Recent policy changes, such as the UK’s introduction of a day‑one right to request flexible working in April 2024, underscore the permanence of hybrid models. In such an environment, comprehensive space optimisation is essential—ensuring that every area is used to its fullest potential while accommodating fluctuating occupancy levels.

The Role of Office Fit‑Out and Furniture in Optimisation

Optimising office space isn’t solely about adjusting square footage; it’s about creating an environment where every inch serves a purpose. Modern office fit‑out and furniture solutions are pivotal in this transformation, providing the flexibility and functionality required for a dynamic workspace.

Modular layouts and flexible furniture allow spaces to be reconfigured quickly to meet changing business needs. Whether you’re downsizing or upsizing, modular office furniture—designed to be assembled, re‑configured, and linked together like building blocks—ensures that your workspace remains adaptable and efficient.

Equally, investment in multi‑functional furniture—such as bench seating with built‑in storage or desks that double as meeting tables—helps eliminate clutter and maximises the usability of every area. This is essential in both compact and expanded office environments.

Finally, ergonomic furniture underpins productivity and wellbeing. Chairs with proper lumbar support, sit‑stand desks, and adjustable monitors ensure that workstations cater to the diverse needs of a modern workforce—whether in a downsized, upsized, or rightsized space.

Regulatory and Compliance Considerations

When optimising office space, regulatory compliance is non‑negotiable. In the UK, any redesign or refurbishment must adhere to stringent building and health & safety standards—ensuring that even as offices are optimised for efficiency, they remain safe, healthy, and accessible.

For instance, the Workplace (Health, Safety and Welfare) Regulations 1992 set out requirements for ventilation, lighting, and room dimensions, ensuring that each workstation benefits from sufficient fresh air and natural light. Guidelines also dictate that every person should have at least 11 cubic metres of space, which helps prevent overcrowding.

Additionally, Building Regulations in England & Wales govern changes to office fit‑outs. Key aspects include Part B (Fire Safety), Part F (Ventilation), Part M (Accessibility), and Part L (Conservation of Fuel and Power). Professional fit‑out teams ensure that every redesign not only meets but exceeds these minimum standards.

Compliance isn’t just a bureaucratic hurdle—it’s a foundational element of an optimised workspace that protects employees and supports productivity.

Design for Wellbeing and Collaboration

A truly optimised office nurtures both wellbeing and collaboration. In the UK, research increasingly shows that the design of the workplace has a direct impact on mental health, job satisfaction, and team effectiveness. Thoughtful design strikes a balance between individual work needs and spaces that encourage social interaction.

Natural light and biophilic elements are at the heart of wellbeing‑focused design. Workspaces that maximise daylight and incorporate nature—through indoor plants or green walls—not only enhance mood but also reduce stress.

Furthermore, ergonomic and quiet spaces such as designated focus areas or wellness rooms allow employees to recharge away from the hustle of open‑plan environments. Simultaneously, collaborative zones—from formal meeting rooms with advanced AV technology to casual breakout areas—foster spontaneous interactions that drive creativity and innovation.

Ultimately, a design that supports both wellbeing and collaboration contributes to higher productivity, fewer sick days, and a more engaged workforce.

Technology Integration in the Optimised Office

Technology is the backbone of a modern, optimised office. In today’s digital age, integrating smart systems into the workspace transforms a static environment into a responsive, dynamic ecosystem.

Occupancy sensors and space management tools enable real‑time monitoring of space utilisation, providing invaluable data for informed facilities planning. Such data guides decisions on which areas to reconfigure, expand, or even repurpose entirely.

Integrated systems for lighting, heating, and cooling can automatically adjust to occupancy levels. Motion‑activated lights and smart thermostats ensure that energy is only used when needed, reducing waste and lowering utility bills. In essence, these smart building systems not only improve comfort but also directly enhance operational efficiency.

Moreover, modern offices are increasingly adopting tech‑enabled furniture. Desks with built‑in power sockets, memory presets, and IoT connectivity ensure that the workspace is both functional and future‑proof, streamlining daily operations.

Sustainability and Cost‑Effectiveness

Optimising office space today goes hand‑in‑hand with sustainability and long‑term cost‑effectiveness. In the UK, where the drive towards Net Zero 2050 and robust ESG (Environmental, Social, Governance) criteria is intensifying, businesses must ensure that their workspace not only supports employees but also reduces environmental impact.

Sustainable practices in office design include the use of eco‑friendly, recycled, or reclaimed materials; low‑VOC paints and adhesives; and energy‑efficient systems such as LED lighting and smart HVAC. By integrating these principles, companies can significantly lower utility bills while reducing their carbon footprint.

Moreover, sustainability often translates into long‑term financial savings. Offices that invest in energy‑efficient retrofits typically see reduced operational costs through lower energy consumption, while a green workspace also enhances a company’s image and appeal to environmentally‑conscious employees and clients.

Additionally, embracing the circular economy through furniture reuse and modular design helps cut costs. Refurbishing existing assets or purchasing high‑quality second‑hand furnishings not only minimises waste but also saves on procurement expenses—making a sustainable workspace both a competitive advantage and a sound economic decision.