The Role of Space Utilization Metrics in Measuring Coworking Success

It’s 2024 – data-driven decision-making is no longer optional if you truly want to be successful in the thriving coworking market. With flex spaces popping up across cities worldwide, coworking space operators must navigate a complex landscape of member needs, competition, and operational efficiency.

One of the most powerful tools they have at their disposal: space utilization metrics. These metrics go beyond just knowing how many desks are filled; they provide a roadmap to optimize space, boost profitability, and ultimately, enhance the member experience.

They also allow coworking operators to be proactive and make informed choices that lead to better space management and long-term business success.

Let’s dive into the most critical space utilization metrics that coworking operators should track and how they can unlock the full potential of their spaces.

Quick Summary

• The most important space utilization metrics include:
  • Desk Occupancy,
  • Meeting Room Occupancy,
  • And Revenue Occupancy
• These metrics provide insight into what your members want and need and when they need it
• Space utilization metrics can help make informed decisions about space allocation, membership pricing options, scaling up or down, and so much more

What Are Space Utilization Metrics?

First, let’s take a look at space utilization metrics and really understand what they are and why they are important.

Space utilization metrics are key performance indicators (KPIs) that measure how effectively the physical space within a coworking facility is used.

They are invaluable for operators because they help manage resources, optimize profitability, and help plan for future growth. For example, if you want to expand your space by adding space for childcare, you need the right metrics to make a more informed decision.

From identifying peak usage times to revealing underutilized areas, these metrics give coworking operators the power to make data-backed decisions that directly impact their bottom line.

Whether maximizing the usage of desks, meeting rooms, or common areas, space utilization metrics provide insights into how to make the most of every square foot.

Key Space Utilization Metrics to Measure Success in Coworking Spaces

The Occupancy Index is an industry-standard measurement where coworking spaces can compare their occupancy to that of their competitors.

This metric offers a clear snapshot of how well your space is performing and help you plan accordingly.

A high occupancy rate indicates that your space and amenities are in high demand and providing members with what they need, while a low rate could signal that it’s time to make some strategic adjustments.

However, there are many flavors to space utilization metrics and several ways to interpret them, so let’s break it down:

Calculating Occupancy Rates

Generally speaking, occupancy rates are calculated by dividing the number of occupied units (desks, rooms, spaces, etc.) by the total available units.

That means, to calculate your desk occupancy, simply divide the number of occupied desks by the total desks you have to offer.

To find other types of occupancy rates, follow the same formula and substitute your unit of choice.

For instance, to calculate meeting room occupancy, divide the total number of hours the room is booked for by the total available hours.

Meeting room occupancy metrics help operators determine if their meeting rooms are in demand or taking up too much unused space.

Similarly, to calculate revenue occupancy, divide your actual revenue by the total potential revenue if you were at full occupancy.

Revenue occupancy is a great metric to use when it comes time to scale your business. Compare what you are making to what you could be making in a best-case scenario.

Don’t forget to include all sources of revenue. This includes events, on-site food and beverage options, etc.

And to calculate space or facility occupancy, calculate the area of your facility dedicated to your workspace by the total area of the entire facility.

This number will help you determine if you are using your space wisely or if there is a better way to lay out your workstations.

How to Leverage Space Utilization Data for Decision Making

Collecting space utilization data is only the first step; the real value comes from using that data to drive decisions. Here’s how coworking space operators can leverage these metrics to optimize operations.

Space Planning and Optimization

Data on desk, office space, and meeting room usage can guide decisions about adding or removing resources, redesigning spaces, or even expanding into new areas. If meeting room occupancy is high, it may indicate the need for more conference-style space.

If meeting room occupancy is low but private desks are in demand, you may want to consider eliminating the meeting space and turning it into individual workspaces. The numbers tell a story and help you prioritize, plan, and optimize.

Pricing Strategies

By understanding metrics like occupancy rates, desk utilization, and meeting room bookings, you can identify peak usage times, underutilized spaces, and member trends that will help better inform pricing strategies.

With this data, they can implement dynamic pricing models, offering higher rates during peak hours and discounts or promotions during slower periods to maximize revenue.

Pricing metrics help operators assess the effectiveness of different membership tiers and packages, allowing them to refine offerings that match demand, improve customer satisfaction, and increase retention.

This data-driven approach ensures that pricing strategies are aligned with market trends, usage patterns, and member behavior, optimizing profitability and resource allocation. You can apply this if you run a coliving space too!

Membership Adjustments

With the help of occupancy data, you can adjust membership offerings, such as offering part-time or off-peak memberships, based on utilization patterns.

Adapting membership pricing according to occupancy helps to increase usage during slower times and incentivizes workers to come when the space is in less demand.

Providing premium rates for high-demand areas or times, while offering discounts or promotional packages for lower-demand periods helps balance occupancy rates throughout the day/week.

Furthermore, these metrics help operators identify when to introduce new membership tiers, such as dedicated desk plans, private office memberships, or even short-term passes, ensuring they meet the evolving needs of their members while maximizing space efficiency.

Scaling Up or Down

If data shows consistently high utilization, it may be time to expand the space. Conversely, underutilized spaces could be repurposed for other activities or offerings.

Occupancy metrics help identify what’s working, what isn’t working, and what the options are for your space.

The goal is always to maximize profitability, but don’t do it at the expense of your members. Take a look at your occupancy rates to determine what, if any, adjustments need to be made.

The Importance of Coworking Data Analytics and Using the Right Tools

To effectively track and analyze these metrics, you need robust data analytics tools. We know that probably sounds scary, but with a tool such as the OfficeRnD Data Hub, for example, it’s really simple.

Data Hub, part of OfficeRnD Flex, provides users with a comprehensive dashboard to monitor space utilization in real time. Its capabilities are pretty impressive, so we’ve pulled out a few highlights for you to explore:

• Real-Time Tracking: Get instant insights into key metrics like occupancy rates, desk utilization, and foot traffic via customized dashboards
• Actionable Reports: OfficeRnD Data Hub generates detailed reports based on date, location, resource, and more that help operators make data-driven decisions about space planning, pricing, and expansion.
• Automated Reporting: The platform centralizes data and automates reporting, leaving minimal room for error. Automated email reports free up time for operators to forecast trends and focus on growing their community.

Why it Matters

Coworking data analytics are crucial because they provide actionable insights that help operators optimize space usage, improve member experience, and drive profitability.

By collecting and analyzing data across multiple metrics, operators gain a clear understanding of how their space is being used.

This allows for more informed decision-making, enabling them to allocate resources efficiently, reduce wasted space and revenue, and identify growth opportunities.

With the help of data analytics, you can spot patterns and trends that may not be immediately visible.

For example, tracking peak hours or foot traffic reveals when staffing levels need to be adjusted or when additional services should be offered.

Analytics can also highlight underutilized areas, allowing you to repurpose or redesign these spaces to increase engagement and revenue.

Furthermore, data analytics plays a key role in long-term planning. They provide valuable insights into member retention, satisfaction, and churn, helping operators enhance the overall member experience.

By identifying which services or amenities are most valued by members, you can improve your offerings to meet customer expectations, resulting in higher retention rates and stronger community engagement.

Real-World Examples of Successful Space Utilization

In a perfect world, your space would be full at all times, right? But of course, this isn’t a perfect world.

So we need to find ways to navigate the coworking landscape and find what works for us. In essence, we need to scale our businesses to their fullest potential all while ensuring we have the data to back it up.

But, where do we start?

In this growing industry, there is so much pressure to scale, but not without using data. So we pull the numbers, but now we need to understand what they mean.

Trying to interpret the numbers could be a full-time job in and of itself. It all just seems a little overwhelming.

Not to fear though. We want to help alleviate some anxiety about uncovering your own data because we’ve seen firsthand the power it has in unlocking your full potential.

So, we’ve found a couple of examples of organizations that have successfully transitioned into a data mindset and used space utilization metrics and analytics to grow their business and operate successfully.

These organizations have also leveraged technology to help in their data collection and reporting efforts.

Stone & Chalk

Stone & Chalk, an innovation hub based out of Australia, is committed to supporting startups and scaleups to fuel growth and promote a successful business.

Like many others, the team found their reporting process consisting of exporting data from OfficeRnD into Excel spreadsheets which, needless to say, was prone to errors and quite frankly, outdated.

With other responsibilities taking priority for their team, many data points were missed or overlooked, leaving the team with inaccurate information.

After implementing OfficeRnD Analytics, they quickly realized hot desks were the key to optimizing and increasing their occupancy rates. It wasn’t an obvious metric and no one would have seen it had they not crunched the numbers.

They realized there was an opportunity here. By adding a number of hot desks into their space, revenue quickly increased and their members benefited from the additional workstations.

OfficeRnD allowed Stone & Chalk to say goodbye to clunky spreadsheets (that never would have caught this game-changing opportunity), and hello to comprehensive, automated reports that aided in space allocation and increased revenue.

You can view the full case study here.

YoCo

Australian-based coworking company, YoCo, has a unique take on space utilization as they manage multiple locations across the country.

A budding empire, YoCo owns dozens of independent spaces all boasting a different flare. As they started to grow and expand their network, they found themselves using a different management system for each location.

YoCo founder, Yusef Oner, felt it necessary to consolidate systems, thus began the fruitful partnership with OfficeRnD. After implementing the OfficeRnD Flex into all space locations, the Flex platform now provides them with a central management system that operators can use interchangeably across locations.

While several features of OfficeRnD Flex come into play for Oner and his teams, one that stands out significantly is the analytics functionality.

When discussing the OfficeRnD Flex platform, Oner said of Data Hub, “There are certain metrics and reports that we look at daily, or at least weekly, just to track the business’s performance and forecast where we’re going and how we’re trending.”

The YoCo team stays on top of their data as a way to stay informed, aid in strategic planning, and drive growth. For more information about YoCo and their success with OfficeRnD Flex’s analytics capabilities, click here.

aSpace

aSpace is a Romanian-based coworking space that emerged as a key player in the industry a few years ago.

Amongst other reasons, they also turned to OfficeRnD Flex for reliable reporting capabilities.

With their accelerated growth and fast-tracked mindset to becoming a top-performing coworking space, came the need for data to help inform strategies.

OfficeRnD Flex’s comprehensive analytics dashboards provide the team with everything from occupancy rates to revenue trends which in turn allows for informed, strategic decisions to be made.

aSpace now leverages OfficeRnD Flex and its data resources to identify growth opportunities, optimize resource allocation, and enhance overall operational efficiency.

You can find a full case study on aSpace and how they utilize occupancy metrics here.

What’s Next?

All in all, space utilization metrics offer coworking operators a wealth of insights that can drive business success.

The numbers always tell a story – good or bad, they don’t lie. The key to unlocking the future of coworking lies in the data, so start measuring, analyzing, and optimizing today!