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When done right, reducing the size of an office is a smart and increasingly popular way to reduce a high fixed cost. Done wrong, though, and it risks creating too small a space that isn’t useful to any team member.
The goal of downsizing is to remove the dead space that a business no longer needs while keeping all the parts that allow people to work efficiently, without losing what makes people come into the office in the first place.
The fact that more than a quarter (28%) of working adults in Great Britain hybrid worked in 2025 has brought the need to downsize further into the spotlight.
In our latest guide, we’ll show how successful downsizing begins by understanding demand and then using a combination of space planning and office refurbishment to save space without sacrificing function.
Think about how much office space you need
Focusing on square footage is a perfectly logical starting point, but not always the best one.
A better approach would be to look at how the workspace is used. A comprehensive review of attendance across a typical month, combined with demand for desks and meeting spaces, helps to distinguish between quiet and busy days.
Working out average occupancy can shine a light on the differences between days. A small office, for instance, may operate well on a Monday but struggle on a Wednesday or Thursday if that’s when employees choose to come in.
These types of workspace reviews that help to reassess age-old office assumptions are backed by the British Council for Offices, which found that post-pandemic office utilisation stabilised at around 66%, a 14% reduction from the 80% benchmark that’s often used.
Of course, this stat does not mean every business can simply remove a third of their office space, but it does mean many businesses should reassess whether the space they require reflects how they operate.
Services such as workplace consultancy can help to turn data points like attendance patterns and employee requirements into a clear brief before money is allocated to a move or refurbishment.
Decide what is still needed in a downsized office
Downsizing is done well when space remains for employees to do their jobs comfortably. An office, no matter the size, still needs to ensure that all key operations can happen without everyone treading on each other’s toes.
Pinpoint the activities that depend most heavily on being in a physical workplace. If most people’s office days are spent collaborating, then removing those areas, while keeping rows of unused desks, is counterintuitive and creates a downsized office that is less useful than before.
Keeping employees involved throughout the process not only keeps them bought into the plan, but also highlights qualitative issues that quantitative data cannot fully express. Spaces that may look unused by employees might actually be empty because they are just unsuitable for the type of work they need to do.
When all of the above is combined, it gives businesses a set of priorities to work through:
- First, protect the parts of the office people rely on.
- Redesign inefficient areas.
- Then, scrutinise spaces that exist just because they’ve always been there.
Reduce desk space without creating problems on peak days
Offering one desk per employee for businesses that operate with a hybrid pattern almost always means a large section of the office is unused for the majority of the week.
Opting for shared or unassigned desks (sometimes referred to as floating desks) allows the same hybrid workforce to operate as before, but from a smaller footprint, with the caveat that the number of desks should reflect attendance and weekly usage.
Putting in place a booking system or rota that informs teams when they need to be in the office can help ensure a shared-desk model runs smoothly, even when certain weekdays are busier than others.
Two ways office refurbishment makes smaller spaces work better
As may already be apparent, reducing an office footprint doesn’t always have to mean relocating. Existing spaces may still be able to support a business’ functions within a reconfigured footprint.
1. Creates environments that help teams work well
Opting to refurb a space creates a secondary opportunity to reconsider meeting rooms that don’t need to be as big as they are or desk layouts that were designed for a working pattern that’s now outdated. With new blueprints in place, furniture and spaces can be chosen around the requirements that matter most, which removes wasted square feet without sacrificing function.
2. Turns single-use spaces into multi-purpose ones
In a tightly packed office, rooms that perform a single function are often empty and consume valuable space. Turning a meeting room into a space that can host meetings but also support collaborative work means it can be used throughout the working day. By having several multi-purpose rooms, floor space isn’t unduly allocated to areas that serve an infrequent purpose.
Focus on areas that offer little value before cutting workspace
As well as the workforce, offices tend to be filled with storage units, furniture, and a range of equipment that occupies floor space without contributing to the daily running of the business. Scrutinise these areas before removing desks and meeting rooms, you might be surprised how much room can be saved.
Further space can be consolidated by digitising paper records if it’s appropriate and reviewing what needs to be on site, or what could be held elsewhere.
This same scrutiny can be applied to rooms or facilities that are not used or that are simply too big. Getting rid of low-value space gives a business a better chance of reducing costs without diminishing the parts of the office employees depend on.
Test your new smaller office against future scenarios
Businesses rarely stay static for a long period, so before a reduction in footprint goes ahead, test the new layout against potential changes in:
- Headcount
- Attendance
- Working patterns
Building adaptability into a new office layout can allow for departments to grow or shrink, or office attendance to change. It’s this adaptability that should form the cornerstone of any downsizing plan.
Finding a workable range as opposed to chasing the smallest possible square footage provides businesses with the necessary short-term cost savings without making another property decision in the near future inevitable.
Reduce costs without compromising
While some businesses may simply have to relocate, others may be able to achieve their efficiency targets by refurbishing or replanning their existing workplace.
A data-led brief for a new workplace gives designers, such as those at Office Insight, a stronger platform to decide where space can be saved.
Head to our Budget Planning tool to estimate your office fit-out costs and space requirements before you start making detailed plans.
