The way work gets done has undergone a fundamental shift over the past five years.
Occupiers have embraced more mobile work-styles, with hybrid policies now the norm rather than the exception. According to CBRE’s, The Math Behind the Hybrid Workplace, 80% of office occupiers have adopted and will sustain hybrid work policies, fundamentally altering how organizations approach space planning. JLL’s research, 2024 Global Occupancy Planning Benchmarking Report, further reinforces this trend, revealing that 87% of companies globally operate with a hybrid program today.
While these new ways of working offer flexibility and autonomy, they introduce significant challenges. Traditional data sets once used to drive efficiency and portfolio optimization are increasingly obsolete. Understanding space demand, allocating resources efficiently, and ensuring optimization strategies remain viable now require more sophisticated insights.
To navigate modern workplace utilization complexities, organizations must consider two distinct use cases.
Portfolio Optimization operates at the macro level, typically focusing on footprint reduction and surplus space disposition to achieve measurable cost savings. This can take several forms, including leveraging early exit opportunities, shedding excess space at lease expiration, or executing sale/leaseback transactions to unlock financial efficiencies. However, in cases where an organization is experiencing growth, the focus shifts to strategically introducing additional space capacity to support expansion while avoiding premature excess. Balancing space needs with business growth ensures companies scale efficiently, optimizing resources without committing to unnecessary long-term costs.
Space & Occupancy Management, on the other hand, ensures workplaces evolve alongside headcount growth and workforce behaviors. Whether densifying floors to enable strategic expansion, repurposing underutilized spaces, or tracking the effectiveness of return-to-office initiatives, this use case primarily drives cost-avoidance rather than direct financial savings.
Together, these strategies underscore the necessity of precise data insights to inform both macro portfolio optimizations and ongoing workspace efficiencies.
Having spent years driving workplace strategy and portfolio optimization across financial services, technology, life sciences, and other industries, I have firsthand experience navigating the challenges of space utilization with incomplete, unreliable data.
Traditional names-in-seats tracking or space allocations data failed to capture the realities of hybrid work, forcing reliance on badge data despite its limitations.
While badge data was the go-to method for workplace occupancy tracking, collective experience exposed several critical shortcomings.
While badge data was the go-to method for workplace occupancy tracking, collective experience exposed several critical shortcomings. What seemed like a reliable proxy for utilization quickly proved inadequate as organizations adopted hybrid work models.
1. Misleading Occupancy Data – One of the most significant flaws of badge data is its severe overinflation of workplace utilization, leading to misguided portfolio decisions. Badge swipes do not equate to actual occupancy or space usage as they merely track entries, failing to account for employees who badge in but do not actively use their assigned workspaces. Additionally, tailgating, where multiple individuals enter behind a single badge swipe further distorts occupancy metrics, making spaces appear far more utilized than they actually are.
A recent study highlights this issue, showing how badge data consistently skews utilization trends, reinforcing the need for more precise tracking methods.
2. Lack of Granular Space Utilization Insights – Badge data only tracks entry points and is often used as a proxy for desk occupancy ("me" spaces) but provides no visibility into shared environments ("we" spaces) such as meeting rooms, amenities, labs, or collaboration zones. Today’s workplaces are designed for more than just individual desk-based tasks, prioritizing collaboration, learning, and socialization. According to CBRE’s 2024–2025 Global Workplace & Occupancy Insights, 92% of surveyed companies now operate with a hybrid model, reinforcing the need for data that reflects the full spectrum of workplace utilization.
3. Inability to Capture Non-Badged Visitors and Temporary Occupants – Badge data excludes contractors, visitors, and unbadged personnel who regularly occupy workspace. Additionally, employees working from offices outside their assigned location often lack badge access, meaning their presence goes untracked despite their active use of workspaces and meeting rooms. This creates blind spots in workplace analytics, resulting in incomplete data on overall occupancy levels.
4. Limited Access to Key Utilization Metrics – Since badge data only tracks attendance and not how spaces are actively used, planners lack visibility into critical metrics, such as average and peak utilization, dwell time, and space type segmentation. These insights are essential for optimizing space usage across neighborhoods, focus areas, collaboration zones, and amenities, helping organizations make data-driven decisions that align with workplace demand.
5. Privacy and Compliance Risks – Badge data is personally identifiable, raising privacy and regulatory concerns when repurposed for workplace analytics. Organizations must navigate compliance frameworks such as GDPR and other data protection regulations, ensuring that badge access records are used transparently and ethically to avoid legal or reputational risks.
The digital transformation of corporate real estate and facilities management is accelerating, driven by PropTech innovation. Advancements in AI-powered analytics, competition among leading providers, and improved sensor capabilities have significantly enhanced workplace utilization data.
Today, IoT sensors provide scalable, real-time solutions that go beyond badge data, delivering precise occupancy insights across entire portfolios. According to Cushman & Wakefield’s The Smart Building Revolution, modern offices are equipped with advanced sensors and automation systems that collect and analyze real-time data, enabling smarter decision-making that enhances efficiency and productivity.
Organizations that fail to adopt these technologies risk falling behind...
Organizations that fail to adopt these technologies risk falling behind, relying on outdated occupancy tracking methods that distort utilization metrics and hinder strategic planning. In today’s evolving workplace landscape, leveraging smart building technology is no longer optional, it is essential for optimizing space, improving operational performance, and maintaining a competitive edge.
Leading utilization data & analytics providers offer:
The promise of IoT sensors has finally caught up to the demands of modern workplace strategy, providing a level of precision and flexibility that was once out of reach. As organizations rethink space optimization in the era of hybrid work, adopting the right utilization technology will be the key to unlocking cost savings, portfolio efficiency, and an enhanced workplace experience.
Tony Josipovic is a recognized leader in corporate real estate, facilities management, and workplace technology. As Head of the CRE / Occupier vertical at Occuspace, he helps clients unlock actionable insights through purpose-driven occupancy and utilization analytics.
With a deep understanding of workplace dynamics, Tony designs solutions that drive cost savings, cost avoidance, portfolio optimization, enhanced workplace experiences, and operational efficiencies, helping organizations make smarter, data-driven decisions in today’s evolving work environment.
