Space Matters: The Hidden Risks of Choosing the Wrong Office Space

As your lease ends, deciding on the right office space is crucial. Whether downsizing due to underutilisation or expanding to accommodate growth, the right choice impacts cost, productivity, and employee experience.

Selecting the wrong size can be costly. Excess space leads to unnecessary overheads, while too little space hinders collaboration and daily operations. A strategic approach ensures your workspace supports both current needs and future aspirations.

This is where a robust Workplace Strategy can help.

The Role of Workplace Strategy

A well-defined Workplace Strategy helps align your office space with business objectives and workforce needs. Key considerations include:

• Future vision: How does your office align with long-term business goals?

• Work patterns: Where, when, and how do employees work?

• Growth plans: Is your workforce expanding, shrinking, or evolving?

• Collaboration needs: How do teams interact? What types of spaces do they need?

• Meeting room usage: Are your meeting spaces fully utilised, or underused?

• Focus and productivity: What do employees need to perform at their best?

• Culture and engagement: How do people socialise and relax?

• Wellbeing: How do you want your space to support wellbeing and ED&I?

• Location factors: How important is proximity to transport, clients, and amenities?

• Storage requirements: Do you need dedicated space for materials or equipment?

These are just some of the key questions that should inform your office selection. Too often, companies sign a lease before fully understanding their needs – only to realise the space is too small, forcing compromises, or too large, leaving them with wasted square footage.

In today’s environment, where businesses encourage employees back to the office, creating a functional and appealing workplace is essential, otherwise employees simply won’t come in.

How to Choose the Right Office Space

A well-defined workplace strategy helps businesses avoid costly real estate mistakes by ensuring the space aligns with company goals, employee needs, and future growth. Here are the key steps:

1. Assess Business Objectives: Clearly define the company’s long-term vision, goals, and operational requirements. Understand how the workspace can support these objectives and foster growth and innovation.
2. Understand Workforce Needs: Gather insights through employee surveys, interviews, and focus groups to determine workspace preferences, work styles, and essential amenities. Consider factors like flexible work arrangements, collaboration spaces, and wellness facilities.
3. Analyse Space Utilisation: Evaluate how existing space is used, identifying underutilised areas and opportunities for optimisation. Consider the use of data-driven tools like occupancy sensors and space management software for accurate assessments.
4. Determine Location Priorities: Identify key criteria for location, such as proximity to transportation, travel times for employees, accessibility for clients and employees, and alignment with the company’s brand and industry presence.
5. Define Space Requirements: Establish the ideal size, layout, and design of the workspace. Ensure the floorplate supports diverse work needs, including focus spaces, collaborative zones, breakout areas, and adaptable spaces.
6. Plan for Technology Integration: Ensure the space can support current and future technological requirements.
7. Budget and Cost Analysis: Develop a realistic budget that covers real estate costs, design and fit-out expenses, and ongoing operational costs. Balance financial constraints with the need for a high-quality workspace.
8. Future-Proof the Workspace: Design a flexible and scalable space that can adapt to changing business needs, workforce growth, and evolving work practices.

Beyond Size: What Makes a Workplace Successful?

The right office space isn’t just about square footage – it’s about functionality and experience as well.

Companies that fail to take a strategic approach to office space often face higher costs, disengaged employees, and an office that simply doesn’t work. Investing in a workplace strategy ensures your space is fit for purpose - not just today, but for the future of work

The result of a detailed workplace strategy will allow your business to transform your workplace with the future in mind.

Location is one of the most important factors to consider when choosing a workspace. A well-situated office can improve accessibility for employees and clients, strengthen the company’s brand presence, and enhance collaboration opportunities. Conversely, a poorly chosen location can lead to long commutes, high turnover rates, and difficulty attracting and retaining top talent.

The size and layout of the workspace are equally crucial. An office that is too small can lead to overcrowding, discomfort, and decreased productivity, while an oversized space can result in wasted resources and unnecessary costs. A well-designed floorplate that accommodates collaborative areas, quiet zones, and flexible workspaces can foster innovation and efficiency. With a clear strategic plan companies can plan their floorplate to suit different working preferences to become fully inclusive and support all their employees including those who are neurodiverse.

Amenities also play a vital role in the workspace’s suitability. Facilities like meeting rooms, breakout areas, on-site cafes, and wellness spaces contribute to employee satisfaction and well-being. Ensuring that the space is designed with technology needs in mind is essential for seamless operations, such smart office solutions and hybrid collaboration tools. Technology is often overlooked at the strategy phase of a workplace transformation resulting in many businesses missing out on opportunities they can capitalise on to propel their operations.

Failing to undertake a workplace strategy can have serious consequences. Misaligned office space can lead to high operational costs, reduced employee morale, and inefficiencies in workflow. It may also necessitate frequent relocations or renovations, disrupting business continuity and adding avoidable expenses.

By investing time and effort in a proactive approach secures a workspace that meets current needs while supporting future growth, ultimately fostering an engaged, productive workforce.