APAC Workplace Utilization Rises 31% While US and UK Offices Plateau: Latest XY Sense Study

By EIN Presswire On Aug 29, 2024

Global workplace utilization in Q2 reached a post-pandemic high driven by gains in high-growth Asian markets.

Office utilization in the Asia-Pacific region increased 10 percentage points to 41% in Q2 2024, while American and British utilization leveled off after strong gains in Q1. These are some of the top findings from the latest Workplace Utilization Index report from workplace sensors and analytics company XY Sense. The strong rise in APAC utilization follow a strong performance in Q1, when utilization in the region grew 9 points.

Global workplace utilization increased 4 points to 40%, primarily driven by gains in India and South East Asia. This level of global workplace utilization is the highest ever since the onset of the COVID-19 pandemic.

The XY Sense Workplace Utilization Index is a quarterly report that analyzes data from 42,000+ workspaces in the US, UK, and Asia-Pacific. XY Sense’s rapidly expanding network of workplace sensors (+29% over Q4 2023) collects the data. The sensors protect privacy while providing real-time insights into office usage patterns, including how employees use desks and meeting rooms. The highly accurate sensors update every two seconds.

The APAC region’s large workplace utilization gains correlate with equally strong economic growth recorded in India (+6.8% YoY*) and Southeast Asia (+4.6%). In North America, workplace utilization remained flat, averaging 28% this year. Relatively modest economic growth (2.6%) and continued layoffs in the U.S. tech sector seem to have been counterbalanced by a greater willingness from employed workers to comply with hybrid work policies. UK utilization declined slightly to 50%, but the region continues to have the highest utilization of any global region tracked by XY Sense.

“The demand for and utilization of office space in many parts of India and South East Asia has been explosive this year,” said Shivaun Ryan, Head of Customer Success at XY Sense. “While the averages for countries like the U.S. and UK appear to show only sluggish growth, we are seeing some companies outperform averages in these regions by proactively adapting their spaces to the more collaborative nature of work today.”

XY Sense data show that increasing space and resources allocated for collaboration would benefit many companies globally. Average hours of utilization for collaboration spaces like conference rooms ran 54% higher than for individual desks (4.0 hours versus 2.6 hours.) On average, 50% of office desks are utilized for less than one hour per day, and 30% are never used at all. Many companies report that teams struggle to find meeting spaces in their offices, especially during the hybrid “Tuesday, Wednesday, Thursday” in-office work week. In Q2, average midweek workplace utilization ran 48% higher than on Mondays and Fridays.

Industry data show that many companies are responding to these changing work patterns by changing how they organize and appoint offices. Many XY Sense clients, for example, are moving away from 1:1 employee:desk ratios in favor of office models that better reflect resource demand and prioritize more collaboration space. To determine optimal space allocations, they leverage real-time occupancy sensor data that reveals actual work patterns of teams in specific office locations. Further, by integrating workplace data with tools like meeting and resource booking platforms, they are eliminating ”ghost bookings” of meeting spaces and resources that are reserved but not used.

Alex Birch, co-founder and CEO of XY Sense, said, “If ever there was a time when an empowered workplace team can make a difference for a business, it’s right now. Old office designs and planning rules don’t reflect today’s work patterns and team needs. When the real estate team has accurate, real-time data on workplace and resource utilization, they can make decisions that improve workplace attendance, productivity, and employee engagement. Wherever your business operates–high-growth region, lower growth market, or both–ensure your workplace ‘fits’ your team needs and empowers your people to deliver extraordinary results.”

* Data from the International Monetary Fund, 2024.

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