How Much Office Space Does Your Business Really Need Today?

Why leading companies are rethinking square footage, flexibility, and culture—and how to make the right call for your business in 2025.

By Chris Rohrer, Broker & Pete Kostroski, Broker | Rokos Advisors

If it feels impossible to figure out how much office space your company actually needs, you’re not alone. What used to be a relatively straightforward process has turned into one of the biggest strategic puzzles companies are facing right now.

In the past, you could look at your current headcount, project future growth, and build a simple equation around desks, meeting rooms, and a breakroom or two. But in today’s workplace environment, that old formula doesn’t cut it. Everything about how, where, and when we work has changed—and that means space planning requires a whole new playbook.

Hybrid Work Has Redefined What “Capacity” Really Means

The rise of hybrid work has completely disrupted traditional assumptions about office usage. Some teams are in three days a week, others five, and many employees remain remote-first. That variability makes it harder than ever to predict how many people will be in the office on any given day—and what kind of space they’ll need when they are.

We’re seeing clients who have thousands of square feet sitting empty on most days, but still struggle to find enough collaboration space when everyone does come in. It’s not just about shrinking space; it’s about reimagining how it’s used and designing for purpose, not just preference. That shift demands thoughtful analysis and often a total reworking of what “right-sizing” actually means.

Growth Isn’t Linear Anymore—And That Changes Everything

Before 2020, most companies could predict a relatively steady growth trajectory. Office space was planned for five to ten years out, often with built-in assumptions for hiring, expansion, and department needs. But today, agility is king. Business models are evolving faster, and headcounts are more fluid due to market shifts, automation, and remote flexibility.

This unpredictability makes long-term space planning feel risky. Companies are hesitant to overcommit but don’t want to be caught short if hiring ramps up again. That’s why many tenants are looking for flexible lease terms, shorter commitments, and scalable footprints—so they can pivot without being penalized.

How Do You Actually Determine the Right Amount of Space?

The right-sizing process starts with the right expertise. Today, the most valuable insights come from forward-thinking architectural firms that have worked with a wide range of clients adapting to hybrid and remote work models. Their experience helps uncover what’s truly right for your business—not just what’s typical on paper.

The process usually begins with data collection—gathering insights from both your employees and your business unit leaders. You’ll want to ask how your current space and hybrid policies are performing, and what your teams want moving forward. You’ll likely hear consistent themes: employees value flexibility in where they work, but when they are in the office, they expect high-quality collaboration spaces, great conferencing, private work areas, and strong amenities like good food, great coffee, and convenient parking.

From there, leadership must make key decisions around flexibility versus in-office expectations, dedicated versus reservable spaces, and cost tradeoffs between high-amenity locations and budget-conscious alternatives. These choices will not only shape your physical footprint—they will also influence your culture and your ability to attract and retain the talent you want.

Every company strikes this balance differently. There is no one-size-fits-all answer today. The most effective approach involves combining employee and leadership feedback, guidance from experienced architects and commercial real estate advisors, and a highly engaged internal team to align your space strategy with where your business is truly headed.

It’s Not Just About Size—It’s About How the Space Performs

One big misconception is that more square footage equals more productivity. But the truth is, design efficiency matters just as much. We’ve walked into 15,000 SF offices that feel cramped and disjointed, and 9,000 SF spaces that support culture, focus, and collaboration beautifully.

This is where workplace strategy comes in. Do you have the right mix of heads-down work areas, team spaces, meeting rooms, and wellness zones? Is your layout helping or hurting performance? If your space isn’t aligned with how your teams actually work, no amount of square footage will fix that.

Landlord Flexibility Is Now a Competitive Advantage

Even if you know your ideal footprint today, you must plan for the unknown. That’s why negotiating for flexibility—like expansion rights, contraction options, and sublease clauses—has become a core part of every lease strategy we lead.

The good news? In today’s market, tenants hold more leverage than they think. Landlords are often willing to offer more favorable terms if you know what to ask for, and that flexibility can be the key to managing risk and adapting as your business evolves.

Bottom Line: Space Planning Is Now Strategic

In this new world of work, space planning isn’t a spreadsheet exercise. It’s a strategic move that impacts your bottom line, your culture, and your ability to compete.

If you’re grappling with how to right-size your space, you’re not alone—and you don’t have to figure it out solo. At Rokos Advisors, we help companies drive the right conversations with employees, team leaders, architects, and general contractors so they can make confident, data-driven real estate decisions that align with where their business is going.

If you’d like to learn more about how we’re helping guide our clients through this complex but critical process, we’d be happy to have a conversation.

The future of work isn’t one-size-fits-all. Let’s find the right space for your team—connect with Rokos Advisors today!

Rokos Advisors is an award-winning Minneapolis - St. Paul based commercial real estate/tenant representation firm specializing in helping businesses find the perfect office or industrial space for their company.