How Office Occupiers Can Get the Most Out of Space Utilization Sensors

The future of the workplace hinges on a critical question: What level of accuracy in utilization data is necessary to make informed, data-driven decisions — and at what cost? 

As hybrid work becomes the standard across many industries, companies are grappling with optimizing office spaces that may be underutilized. This challenge makes investing in utilization sensors essential, yet the financial and technical hurdles are daunting. The decision to adopt these technologies could determine whether businesses can create work environments that truly meet their employees’ needs, or risk the consequences of less than optimal choices in a rapidly evolving landscape.

Before the pandemic, hybrid work arrangements were rare, with fewer than 5 percent of workers participating, mainly in sectors like information services where remote work was feasible. The pandemic significantly altered this dynamic, resulting in a lasting increase in hybrid work. By mid-2023, approximately 30 percent of workers were hybrid, marking a significant shift in workplace practices. This change, driven by evolving work culture and technological advancements, has made hybrid work a standard option across many industries, excluding those like manufacturing, where physical presence is essential.

The need for data-driven decision-making in workplace planning and management has grown as hybrid work has become more prevalent. The transition to hybrid work has made it all the more crucial for companies to gather and analyze utilization data. This data offers insights into when and how employees use office spaces, enabling organizations to make informed decisions about resource allocation, space design, and in-office policies.

Without accurate utilization data, companies risk creating workplaces that don’t align with employee needs, leading to wasted resources or underutilized spaces. Additionally, rigid return-to-office mandates can backfire, causing employee dissatisfaction and increased turnover. Utilization data helps mitigate these risks by ensuring that in-office policies are based on actual usage patterns, allowing for more flexible and productive workspaces.

Investing in utilization sensors remains challenging for many organizations. The cost of these sensors can be significant, ranging from $1.30 to $2.40 per square foot, depending on contract length and scale. Though longer contracts might lower costs, the substantial investment still makes it hard to justify. These costs are often the first to be reduced during value engineering (VE) processes. It is nearly impossible to find operational funds for this technology because it competes with other critical needs. This financial hurdle limits the adoption of utilization sensors despite their clear benefits in optimizing space and guiding data-driven strategies.

Fortunately, the landscape of utilization technology is changing. Advancements are driving down costs, particularly in Bluetooth-based systems. These newer solutions are more affordable than traditional sensors, which rely on computer vision or heat and motion detection to achieve nearly 100 percent accuracy. Depending on contract length and scale, these new solutions can cost as little as $0.20 to $0.50 per square foot, making them a more accessible option. These cost-effective technologies, however, target a different level of accuracy, typically around 90 percent. 

This trade-off between accuracy and cost is reshaping how organizations approach utilization technologies. For many, Bluetooth-based systems’ approximately 90 percent accuracy may be sufficient to guide strategic decisions, offering a viable alternative for those who previously struggled to justify the investment.

Despite these advancements, significant hurdles hinder the wider adoption of utilization sensors. Security concerns are a major issue, particularly with sensors that use computer vision to collect data on employee movements. Ensuring compliance with data privacy regulations and protecting against cyber risks is critical. Additionally, integrating these technologies into existing IT infrastructures is another challenge. Finding a place for these tools within the IT roadmap can be complex, especially when competing with other priorities.

A key consideration is how real estate and workplace professionals can partner with IT experts to effectively advocate for the investment in these technologies. Though they bring valuable expertise in space planning, collaborating with IT professionals can help bridge any gaps in technical knowledge, ensuring that the business case is robust and well-rounded. This partnership is crucial for defining the problem space, outlining expected outcomes, and articulating the potential impact on costs and employee experience. 

By working together, these teams can ensure that the benefits of utilization technology are fully understood and valued across the organization, leading to more informed and strategic decision-making.

Utilization sensors are powerful, but they are not a panacea. To truly unlock their potential, the data they generate must be integrated with other sources, such as employee feedback, room booking, and additional workplace analytics. By combining these data streams, organizations can gain a holistic view of workplace dynamics, leading to more nuanced decision-making. This comprehensive approach allows companies to tailor in-office policies and workplace designs that optimize space while enhancing employee satisfaction and productivity.

Ultimately, utilization sensors are a foundational technology for modern workplace planning and management, but their true value is realized when integrated into a broader ecosystem that drives informed, impactful decisions. Overcoming the remaining hurdles is essential for organizations looking to fully leverage these tools and create workplaces that are both efficient and supportive of employee well-being.

Jeff Gagnon is an executive vice president and head of workplace at technology and brokerage firm Raise Commercial Real Estate.