ROI Analysis in Offices. Cubelizer system Analyzing Underused Space to Reduce the Rented SQM.

In this article we will analyze the ROI analysis in offices by using Cubelizer System that allows workplace manager to analyze the real use of the space (workstations, meeting rooms and common areas) in real time or aggregated information by different periods. 

With this information, managers can reduce costs in different ways althoughin this article, we will just analyze the ROI of using Cubelizer System to identify, with aggregated information, how much space is underused or unused to reduce the rented sqm, an so, get a straight savings in the P&L.

As we analyzed in this article, companies lose money every year with the traditional 1:1 workspace model (one person, one desktop). General space utilization analysis shows that occupancy used to be as average under 70%, although with sharp differences between sectors, activities and corporate cultures Adding metrics to space management help companies evolve from the 1:1 model to a new one that better fits with their employees’ needs and company interests and then reduce rented sqm. And thus, it drives operational efficiency and Real Estate savings.

HOW TO FACE THIS CHALLENGE

According to the office metrics report made by Cushman & Wakefield, the cost in a 1:1 workstation model, depending on location, is:

CITYANNUAL COST PER EMPLOYEE
MADRID6,500 €
BARCELONA5,000 €
LONDON27,100 €
PARIS13,500 €

What if metrics show that we can adapt the model to 1:1.3 or 1:1.5?? The annual cost per employee would dramatically fall down.

Maybe, at this point you are thinking that you can do that without any data. For sure, as we have done for years in an inefficient way.  Let me explain some further drawbacks of doing so:

  1. Without data, you may be over reducing available space and your employees will be uncomfortable and their productivity will decrease. That’s not good either the employee or the company.
  2. Or on the other side, you may be under reducing available space so you are losing money by increasing your cost in an unnecessary way.

What it is sure is that you cannot properly adjust your workplace size ,both keeping comfort and reducing cost, without the right monitoring system.

ROI ANALYSIS IN OFFICES

Imaging your workspace showing the following figures:

  1. These figures show the evolution of the average occupancy during a 6 months project.

Just with this information, we would conclude that the average occupancy is above 43.5%. Probably unsustainable from any fiancnial and operational point of view.

2. Nevertheless, the information gap must be fulfilled. These charts show peak occupancy during the same period: 99.5% of the time peak occupancy it is above 70%, and 82.4% of the time above 60%. The perspective has probably changed now.

  1. In addition, we might add specific KPIs by workstation, areas, zones, etc. in order to identify it all teams (marketing, commercial, legal) have the same occupancy or if there are specifics. Just doing so we could figure out a new workstation configuration or even workplace management model. For example, with this kind of maps by area.

Analyzing the previous charts, we could decide to take different decisions:

  • Reduce the rented area by 30% in all the office.
  • In the area located in the middle of the space, the sales team area, adopt a 1 workstation per 2 employees ratio.
  • And the rest of the space use a 1:1.5 ratio.

This is the way to identify points of improvement and make your space more efficient.

TIME TO SAVE MONEY

Sometimes, we may think that using technology alike Cubelizer is a cost. But it is not. It is an investment, and a highly efficient one since the ROI is quick and straight. In just two months from a project companies are returning the investment.  

Just take a look and check how big savings could be changing employee workplace ratio:

RELATION WORKSTATION-EMPLOYEEANNUAL REDUCTION COST PER EMPLOYEE
1:1.3-3,000 €
1:1.5-4,300 €

And now, make your figures. It is not a minor saving.


We have analyzed the return of the investment considering just one of the potential applications or use cases. Nevertheless, Cubelizer System might be used to get additional benefits, for example:

  1. Smart Management of the space, once Managers decide that workstations must be shared between employees, use the system to manage the new flexible model in an automatic way.
  • Analyze how COVID protocols are being accomplished, and so, create a healthier and trustier place for employees.