For decades, tech companies set the gold standard for workplace innovation. Open floor plans, collaboration hubs, and on-site perks reshaped the modern office experience. But as hybrid work takes hold, those once-revolutionary spaces are sitting underutilized—draining budgets and missing the mark on today’s employee needs.
A recent study by Density, in partnership with Hassell, analyzed 1.4 million square feet of office space and confirmed what many companies are already experiencing: traditional office models are no longer working. The challenge now is rethinking workspaces to align with evolving work habits—a shift that demands both strategic planning and bold action.
The Utilization Crisis
The numbers paint a stark picture:
- Average tech office occupancy is below 40%, with some as low as 25%.
- Even during peak days, utilization rarely exceeds 60%.
- Desks are empty 70% of the time, while meeting rooms operate at 80-90% capacity.
This inefficiency leads to wasted resources and a poor employee experience. Employees no longer come to the office just to sit at a desk; they come for collaboration and connection. Yet, many office designs fail to accommodate these evolving priorities.
“Companies are wasting a lot of space right now, and their designs don’t support how employees actually work.”
— Annie Cosgrove, Director of Analytics & Insights at Density
Hybrid Work’s Impact: What the Data Shows
Hybrid work has fundamentally changed how office spaces are used:
- Mandatory office attendance (3+ days per week) leads to slightly higher utilization—17% more than fully flexible models—but still leaves massive inefficiencies.
- Employees in hybrid settings gravitate toward meeting spaces, lounges, and collaboration zones rather than individual desks.
- Companies with flexible policies see higher demand for multi-use spaces that support brainstorming, deep focus, and hybrid meetings.
The takeaway? Office spaces must be purpose-built for collaboration, not just assigned seating.
Meeting Rooms: The New Battleground for Office Space
Meeting rooms have become the most in-demand office feature, but they’re being misused:
- 50% of small meeting rooms (4-6 people) are occupied by a single person.
- Larger meeting rooms often turn into makeshift private offices.
- Many offices lack proper hybrid meeting setups, causing friction for remote collaboration.
“There’s a real need for companies to rethink how their meeting spaces are used.”
— Annie Cosgrove, Density
To solve this, companies need smarter room configurations, clear usage policies, and tech-enabled hybrid meeting spaces that balance privacy, collaboration, and efficiency.
The Cost of Underutilized Space
- Every workstation costs a company $15,000 – $25,000 per year in rent, utilities, and maintenance.
- For a 100,000-square-foot office with 30% desk occupancy, that translates to millions of dollars wasted annually.
- The environmental impact is equally concerning—empty offices waste energy, increasing a company’s carbon footprint and misaligning with ESG goals.
It’s not just about real estate savings—it’s about smarter, more sustainable workspaces.
A Blueprint for the Future of Work
The Density-Hassell report outlines key recommendations for adapting office spaces to today’s needs:
- Flexible Layouts – Replace rows of empty desks with quiet rooms, phone booths, and collaboration zones.
- Hot Desking & Shared Workstations – Reduce dedicated workspaces and increase on-demand seating.
- Hybrid-Ready Meeting Spaces – Equip rooms with top-tier video conferencing tools to support seamless collaboration.
- Purpose-Driven Design – Define the core function of your office—collaboration, innovation, focus—and design for that goal.
“Trying to accommodate every work style leads to a collection of mediocre spaces. Be intentional.”
— Phil Kirschner, Future of Work Expert
The Role of Leadership in Office Evolution
Physical changes alone won’t fix the problem. Leadership and company culture must drive the shift:
- Executives should model the right behaviors—using shared spaces instead of private offices.
- Space utilization teams should monitor trends and employee needs to keep workplaces agile.
- Community managers can enhance engagement, ensuring employees feel connected when they come to the office.
The best workspaces are dynamic, not static.
Why Now? The Cost of Waiting
Many companies are stalling office updates, waiting for lease expirations or clearer work trends. But delaying action comes at a cost:
- Lost engagement: Outdated offices discourage in-office attendance.
- Wasted spending: Paying for unused space drains budgets.
- Missed ESG targets: Inefficient real estate increases energy waste.
“We have a responsibility to share spaces and use them efficiently.”
— Annie Cosgrove, Density
InterWork Office Solutions: Your Partner in Smart Workspaces
At InterWork Office Solutions, we help companies reimagine their office footprint—from space planning and hybrid work strategies to sustainable decommissions and reconfigurations.
✔ Flexible office designs that match today’s workforce
✔ ESG-focused real estate solutions
✔ Turnkey project management for seamless transitions
Let’s reimagine your workspace together. Contact us today at info@interworkoffice.com or call 855-755-9675 WORK to start optimizing your office for the future.