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Office Space , Commercial Real Estate

How to Calculate How Much Office Space You Need?

By Jonathan Keyser
September 17, 2024

 

 

Listen On The Go

So, you're thinking about moving offices or setting up a new one, and now you're stuck trying to figure out just how much space you need. It's one of those questions that seems simple until you start diving into it. But don't worry; we're here to help you break it down.

 

Figure Out What Your Team Needs

First off, let's talk about your team. How many people do you have, and what do they do every day? The number of employees you have is a big deal, but so is understanding what kind of space they need to do their best work.

 

Are your people spending most of their time collaborating in groups, or do they need quiet spaces to focus? Do they need big desks for all their gadgets or documentation, or are they working mostly on laptops? It's worth spending a little time thinking about these things upfront because it'll help you figure out how much room each person really needs.

 

Do Some Quick Math

Alright, now let's get into the numbers. Typically, here's what you're looking at for space per person:

 

Private Offices: 150-250 square feet per person.

Open Plan: 100-150 square feet per person.

Hybrid Setup: 60-110 square feet per person.

 

These are just general guidelines, but they'll give you a solid starting point.

Here’s an example, if you have 100 team members and 10 of them need private offices and the rest can be stationed in an open plan, your starting point should be between 10,500 – 16,000 square feet.

 

Then you’ll need to factor in the common shared spaces, and any special requirements.

 

Shared Spaces

Square footage can vary widely for shared spaces and is dependent on the site’s floorplan optimization and size of the tenant. Some elements will need to scale in size and quantity as the quantity of employees’ scales, while others can remain consistent for tenants with a large range of employees. As a rule of thumb, you can add in an additional ~25% of the calculated space from step 2 to determine your rough square footage needs in this category. The ~25% will encompass:

 

  • Meeting Rooms: How many do you need? What size? Do you need a space that can accommodate your full team at one time?
  • Break Rooms
  • Reception Area: If you have clients over, you'll want a nice, welcoming space. Will the reception area also need to host a receptionist?
  • Storage: Printing materials, files, event materials, etc.

Consider Special Requirements

Does your business have any unique needs? Maybe you have a big server room or a dedicated space for training sessions. These special-use areas are easy to overlook but important to include in your calculations. It's always better to plan for them now rather than scramble later.

 

Build in Some Flexibility

Commercial real estate transactions are multiyear agreements, some lasting in the five-to-ten-year range. Business needs can easily change in that timeframe so it’s important to always give yourself a bit of breathing room. Adding an extra 20% to your total space can help ensure you don't outgrow your office too soon.

 

Add It All Up

Now, let's put it all together. Take your space per person, add in ~25% for common areas, include any special requirements, and top it off with an additional 20% of buffer space. That should give you a good idea of how much space you need.

 

Here's a simple formula:

 

Total Space Needed = (Space per Employee x Number of Employees) x 1.25 Space for Common Areas + Space for Special Areas x 1.2 Buffer

 

Ask for Help If You Need It

Your business is complex and we understand that finding the right office space isn't just about crunching numbers - it's about understanding what makes your business operate most efficiently. If you need more customized guidance, Keyser would be honored to serve you. Our team takes the time to thoroughly understand your needs, whether it's planning for growth or creating a space that truly works for your team. We're not just about square footage; we're about finding the right fit for you. So, if you need a hand figuring it all out, just reach out. We’re ready to help you find an office where your business can thrive.

 


 

Frequently Asked Questions:

How do you determine how much office space a business needs?
Office space needs depend on employee count, workspace type, shared areas, and future growth. Businesses should evaluate their teams work, choose between open vs. private layouts, and ensure enough room for collaboration. Calculating square footage per person provides a strong starting point for efficiency and comfort.

 

What factors should be considered when planning office space?
Businesses should consider team size, layout preferences, meeting spaces, storage, and future expansion. Workflow efficiency, employee comfort, and company culture play key roles. Additionally, factors like lease flexibility, technology needs, and budget constraints should be evaluated to ensure the space meets both current and long-term business objectives.

 

How much space does each employee typically need?

Space per employee varies based on office layout. Traditional offices may need 150-250 square feet per person, while open plans require 100-150 square feet. Hybrid models balance individual workstations with shared spaces, ensuring employees have enough room for productivity without wasting excess square footage.

 

How do I know if my business has too much or too little office space?
Regularly reassess your office space needs based on employee count, work style, and future growth. If the space feels cramped or disrupts productivity, you may need more room. On the other hand, unused areas or remote work trends could signal excess space. Strategic planning helps ensure your space aligns with business goals.

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Jonathan Keyser

Jonathan Keyser is the Founder and Managing Partner of Keyser Commercial Real Estate(http://www.keyser.com/), which has become the largest commercial real estate firm of its kind in Arizona. Jonathan is also a Founding Partner of Exis Global, which today has over 580 people worldwide representing exclusively occupiers of commercial real estate. He is also the founder of a small investment fund that invests in emerging technology companies within Arizona, to support and help grow the startup ecosystem in the state. Jonathan was recently named "The Commercial Real Estate Disruptor" by USA Today and he is a #1 Wall Street Journal Best Selling Author, for his Best Selling Book, “You Don’t Have to be Ruthless to Win”. He has also been named a "Top Social Capital CEO" by the International Business Times, is a highly sought after keynote speaker, is widely recognized as a thought leader featured in hundreds of articles, publications, and podcasts, and has been named a "Top 20 Virtual Keynote Speaker" nationally. As an entrepreneur, Jonathan has built KEYSER into an eight-figure firm named recently as one of the Top 50 Most Trustworthy Companies in America by The Silicon Review. Jonathan is also one of the most connected business leaders in Arizona. He is an active member of Greater Phoenix Leadership (consisting of the region’s leading CEO’s), and he is also a member of Young Presidents Organization (YPO), Chief Executive Organization (ceo), and the Million Dollar Speaking Group (MDSG) within the National Speakers Association. With almost 30 years of experience in the Commercial Real Estate Industry, Jonathan’s firm represents occupiers of space exclusively, both domestically and internationally across a broad range of industries. Jonathan is sought out by companies around the world for his real estate expertise and business acumen. He is particularly good at identifying creative strategies to align real estate with business requirements, designing and implementing unique solutions to complex real estate challenges, and solving Landlord / Tenant conflicts where negotiations have deteriorated in the face of rising hostilities. Jonathan is happily married to his wife Susanna, and has 5 kids with one on the way. His mission is to change the business community through selfless service, and his entire firm is built upon this philosophy. Jonathan is known throughout the business community as someone who loves to help others, and who goes out of his way to be of service to people across the community.

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