The average cost of real estate in major cities across the U.S. is on the rise. The price of corporate real estate per square foot was 3-4% more in 2019 than 2018, with an average of $153 for construction and $93 for rent. Hotels now costs over $300 per square foot to build, while hospitals average over $500 per square foot. When these square feet aren’t occupied or used, you end up with waste or lost productivity.
Ongoing monitoring and measuring of how people use space is now essential to planning real estate projects, preventing unused space and adapting to occupants’ needs.
That’s why we’re excited to announce Space Analytics.
We’ve updated Space Analytics to provide you with the insights you need to feel confident about real estate decisions across your organization. Space Analytics takes the guesswork out of space performance, making it easy to compare the effectiveness of different spaces by type, time of day or usage. Powered by Density’s anonymous people-counting sensor, Space Analytics provides accurate and ongoing visibility into how each building, floor and room is used. Here’s a look at type of actionable insights you gain from these capabilities
Unlock Savings without Sacrificing Occupant Experience
With Space Analytics, identify areas, rooms, floors or buildings that are chronically underutilized — and make clear recommendations to your team on how to unlock savings. The dashboard compiles insights on the use of each space across any time frame. In this case, desk areas on one floor were being underutilized—representing over $50,000 in potential savings, without impacting staff or employees.
With an average of 40 unused desks across three desk areas on one floor at $450 per desk, this company was spending an average of $54,450 on unused desks every month. What’s more? One team was responsible for the majority of the problem: sales. It turns out, the sales executives were spending most of their time on the road. Even when they were around, they were spending more time hosting clients in a meeting room. The client switched to a 2:1 ratio of desks to salespeople and were able to adopt the policy across their portfolio for additional savings.
In another case, an entire office was being underutilized—representing millions a year in maintaining rent and management of prime office space in a major city. Here’s a look at the utilization of four offices across the clients’ corporate real estate portfolio.
At peak utilization, Office 200B was only 56% utilized, with an average of 35%. The office was designed for twice the amount of people than currently use it. After tracking similar trends of underutilization over the course of six months, the company decided to consolidate two of their properties. The company was able to achieve a healthy utilization rate of 70%-80% after the consolidation, which saved millions annually without causing complaints among employees.
Of course, cramming people into buildings isn’t the goal of workplace strategy. Balancing cost efficiencies with a great experience is the key to success. When both real estate costs and employee expectations are high, accurate and ongoing usage metrics provide the clarity needed to navigate real estate decisions whose impacts are felt across the organization.
Identify Your Best and Worst Performing Spaces
Density’s sensors are installed in a variety of spaces: workplaces, airports, hotels, stores, houses of worship and college campuses. Within each location, the sensors can track the exact number of entrances and exits throughout the building at any given time of day. This unique level of granularity is what makes Space Analytics such a powerful tool for understanding how foot traffic changes over time.
Let’s say your boss asked you how to accommodate a 2x growth in engineering headcount at the company’s headquarters. With Space Analytics, you can instantly understand exactly how many people enter each floor for any given timeframe. In the case of this Density customer, Space Analytics revealed that the 1st Floor was visited more than the 2nd Floor. The one day with no visits? Thanksgiving.
Space Analytics proved that the 1st floor had four times more traffic than the 2nd floor. This insight made it clear that the 2nd floor had the capacity to accommodate the growing number of engineers for their upcoming hiring spree.
Align Stakeholders with First-of-its-Kind Data
Space Analytics provides you with the insights you need to drive change across your organization. As our most flexible reporting tool, you can configure the data you need into a report, then save, share and export with just a click. You can sort different spaces by function—let’s say all cafeterias or lounges—and see how each is used compared to a building code or set capacity.
Monitoring and measuring space utilization improves real estate planning, operations and facilities and strategic portfolio decisions. When the stakes are high for real estate to perform, there is a clear need for accurate data that ensures every square foot is used effectively and efficiently.