Breaking Property News 25/11/24
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New Workplace Utilization Index reveals APAC workplace utilization skyrocketed, UK retains global utilization leadership
Press Release MELBOURNE, Australia & NEW YORK, [November 25, 2024]: Employees and executives aren’t just imagining it–most workplaces are much more alive than they were a year ago. Global workplace utilization in Q3 2024 has jumped 11 points versus Q3 2023, rising from 26% to 37%, according to the latest report from XY Sense, the actionable intelligence platform for real estate teams.
Growth in APAC utilization has led the world’s regions, rising 15 points from 27% to 42%. North America, which has lagged behind the rest of the world in utilization since the onset of the COVID-19 pandemic, also showed solid growth, rising four points from 21% to 25% year-over-year.
UK workplace utilization temporarily declined in July and August of 2024–reflecting a seasonal pattern in which high rates of European summer vacation-taking temporarily reduce workplace attendance. In the month of September, the UK reclaimed its #1 global ranking, with 50% office space utilization.
The XY Sense Workplace Utilization Index is a quarterly report aggregating data from 42,572 workspaces across North America, EMEA, and APAC. The data come from XY Sense’s vast network of privacy-preserving sensors installed in client workspaces. These privacy-preserving sensors passively monitor office areas to collect real-time insights on the number and location of workers present, as well as dwell times associated with specific floor plan features, such as desks and meeting rooms. Data is updated every two seconds for maximum precision.
“The recipe that’s brought workers back consistently? Honey and vinegar,” said Shivaun Ryan, Head of Customer Success at XY Sense and the author of the Workplace Utilization Index. “Companies are luring workers back to the office with perks, while a shaky economy is reminding people that showing up matters.”
Many companies have also pursued efforts to rightsize office space to their current needs. While global rightsizing is a process that will take years because most companies are locked into long-term lease arrangements, some companies have already been able to release unneeded space.
England and India showed the highest workplace utilization among all tracked regions in Q3 2024, at 58% and 45%, respectively. England has consistently shown higher workplace utilization than the rest of the UK since the return to office movement began. Every tracked country in APAC now shows utilization of 40% or higher. The countries in the sample with the lowest utilization were the US and Canada, at 27% and 24%.
Because most companies with hybrid policies ask their teams to come in midweek, office utilization rates for Tuesday, Wednesday, and Thursday are much higher than for Monday and Friday. Tuesday showed the highest utilization, at 45%. Friday showed the lowest, at 24%.
Since the beginning of the return-to-office era, utilization rates for individual desks have been far lower than for meeting areas like conference rooms. This is because teams tend to concentrate their collaboration sessions and meetings on in-office days. Team members then do more individual focus work on Mondays and Fridays. In Q3, we saw a small increase in desk utilization versus the previous quarter. However, 45% of desks are utilized for less than one hour daily.
The space types with the highest utilization were team breakout areas (enclosed and unenclosed) and walled conference rooms. Space types with the lowest utilization were individual desks and open collaboration areas. Walled collaboration spaces consistently showed the highest utilization in our data because they offer greater privacy, security, and noise reduction than open collaboration spaces. They are also significantly more likely to provide technology for video conferencing and other resources that help teams work together more effectively.
Uneven demand for workplace resources and variations throughout the week create challenges for real estate teams tasked with rightsizing and optimizing offices. Many companies, for example, report that needed conference room resources are often unavailable at peak demand times on in-office days.
Meanwhile, large areas of individual workstations like desks and cubicles sit idle, wasting expensive real estate and squandering the hive-like energy from a vibrant office environment. In response, companies are leveraging utilization data to identify the resources teams need and formulating plans to eliminate these barriers to efficiency.
“Workplace utilization data is an important component of any company’s efforts to maximize productivity,” said Alex Birch, co-founder and CEO of XY Sense. “Every time a bank of desks sits empty or a team must wander from floor to floor looking for a place to meet, the company burns through worker time and satisfaction. Commercial office space is one of the largest expenses on company balance sheets, so it’s time for businesses to take their blindfolds off and make their office space work harder for both employees and the bottom line.”
Andrew Stanton Executive Editor – moving property and proptech forward. PropTech-X
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