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Facility ManagersMatterport BlogSpace Utilization

Facilities Managers Using Matterport for Space Utilization Efficiency18973

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Space Utilization Guide: How To Establish Your Baseline & Improve Space Efficiency | Learn how facility managers can get the most return on investment from properties


The following summary is by ChatGPT-4


Efficient Space Utilization: A Guide to Boosting Return on Investment for Property Owners

In an era where rent can account for anywhere between 6% and 88% of operational costs, space utilization has become an essential focus for facility owners and managers. This article provides a comprehensive guide on space utilization, illustrating its importance in today's hybrid and remote work models and highlighting ways to establish, measure, and improve efficiency within commercial properties.

Understanding Space Utilization

Space utilization is a quantifiable aspect of commercial real estate that measures how spaces are occupied and utilized within an office environment. It involves tracking the number of workspaces, their occupancy rate, and adjusting them to suit the current working patterns. The article delves into how space utilization can provide financial and non-monetary value, emphasizing the importance of having consistent ways to measure it.

Key Benefits of Optimization

1. Improved Health and Safety: By optimizing space, hazards are reduced, and employee well-being is increased.
2. Better Talent Retention and Productivity: Strategic planning of office spaces can lead to happier employees and lower turnover.
3. Reduced Relocation Costs: By focusing on existing spaces, businesses can save on corporate relocation expenses, which cost U.S. businesses over $14 billion annually.
4. Sustainability: As stated by Willem Janssen, Director of National Offices at Colliers, how space is used directly impacts the carbon footprint. Sustainable buildings outperform others.
5. Long-term Vision Expression: Proper utilization of space reflects a business’s enduring power, attracting clients and investors.
6. Ancillary Data Collection: By tracking space utilization, unexpected insights may emerge that can lead to valuable adjustments in space management.
Calculating Space Utilization

Two main approaches can calculate space utilization: a generalized formula that offers a snapshot and a specialized, scenario-based formula for more nuanced understanding. Key metrics to track include occupancy load, space availability, space cost per square foot, worker density, space utilization rate, loss factor, and opportunity cost.

Ways to Improve Space Utilization

The article outlines practical methods to optimize space usage, beginning with clear goal setting and creating a digital twin of the space. This can be achieved either by hiring professionals or using a tool like the Pro3 Camera. Once a digital twin is created, collaboration tools like Measurement Tool, Tags and Notes, and Floor plans can be utilized to plan and iterate for peak space utilization.

A phased approach is recommended, and Matterport's technology is highlighted as an advanced tool that can aid in the process, replacing traditional methods like badge scans and tape measures.


In a world where real estate costs are among the most significant line items, space utilization has never been more critical. This guide provides valuable insights for facility managers to track, understand, and optimize space utilization. Whether for boosting productivity, improving sustainability, or cutting costs, the strategies outlined offer a pathway to a more efficient and prosperous future for property owners and their tenants.

As the article concludes, space utilization is essential for any business leader looking to increase return on rent payments. It's not just about cutting costs; it's about harnessing the full potential of the space, creating a better working environment, and reflecting the strategic use of real assets.

ChatGPT4 Prompt: Imagine that you work for USA Today. Write a news story of up to 500 words that summarizes the following:
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WGAN-TV Podcast
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This list provided by ChatGPT4:

Here are the top 10 bullet points summarizing the key aspects of the detailed information provided on space utilization and its efficiency:

1. Definition and Importance of Space Utilization: Space utilization is the measurable value derived from commercial real estate, especially relevant in the context of hybrid work models. It plays a vital role in optimizing costs and enhancing value.

2. Reasons to Optimize Office Space: These include improving health and safety, better talent retention, reducing relocation costs, improving sustainability, conveying long-term vision, and gaining insights through data collection.

3. Methods to Calculate Utilization: Two main methods to calculate space utilization are the generalized way, dividing on-site workers by space capacity, and the specialized way, using a scenario-based formula with specific inputs.

4. Key Metrics to Track: Metrics such as occupancy load, space availability, cost per square foot/employee, worker density, space utilization rate, loss factor, and opportunity cost provide essential insights into space efficiency.

5. Improving Building Sustainability: Emphasizing eco-friendly utilization of space, as this impacts a company’s carbon footprint and sustainability.

6. Ways to Improve Office Space Utilization: Establishing goals, creating digital twins through professional scans or DIY methods, sharing digital twins with collaborators, and adopting phased improvements for optimal utilization.

7. Utilization in Today’s Hybrid Work Environment: Addressing the changing dynamics of office attendance patterns and adapting utilization strategies accordingly.

8. Technology’s Role in Space Utilization: The adoption of tools like Matterport's technology for accurate 3D mapping to facilitate tracking and improving space effectiveness.

9. Tailoring to Specific Business Needs: Acknowledging unique scenarios like seasonal businesses or different job roles, and creating customized equations for accurate space utilization assessment.

10. FAQs and Practical Tips: Addressing common questions and offering actionable advice on how to boost productivity, create a healthier workplace, and cut unnecessary costs through strategic use of space.
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