The Million Euro Challenge: Do You Really Need More Office Space?

For many large organisations, the return to office debate has reignited a major challenge: how much space do we really need?

Hybrid work has reshaped how people use offices. Some companies are struggling with overcrowding on peak days, while others are finding vast areas of their workspace empty for much of the week. Despite these shifts, many employers default to expansion as the solution - believing that more desks and meeting rooms are the answer.

And for those considering expansion, the numbers are sobering - who would've thought that adding one hundred desks could cost up to one million euros!

"conversations with multiple clients on the topic of desk expansion costs confirm that a 100-desk expansion can cost in excess of one million euros, all told" - Tomás Collins, CEO @ SiteIQ

Before investing in more space, the smarter question is: do you actually need it?

Offices are getting busier - but how much busier?

The High Cost of Expansion

Adding more desks isn’t just about squeezing in extra chairs—it’s a massive investment. While many multinational organisations already have the physical floor space, converting it into usable, functional work areas involves fit-out, cabling, infrastructure, and compliance upgrades that carry substantial costs.

Fit-Out & Infrastructure: From IT networks and power supply to furniture and acoustic treatments, a typical office fit-out costs €1,500 – €3,000 per square metre.
Cabling & Tech Integration: Running new power and data lines, ensuring security compliance, and installing workplace tech can add another €500 – €1,500 per desk.
Structural & Civil Works: Adjusting layouts, demolishing walls, and reconfiguring HVAC and lighting systems can push costs higher—especially in older buildings.
Annual Operational Costs: Heating, cooling, cleaning, and maintenance add an estimated €6,000+ per desk per year—a cost that compounds over time.

When you add it all up, expanding by 100 desks can exceed €1 million - all before considering long-term operational costs.

With stakes this high, organisations need to move away from anecdotal decision-making and focus on real data before making million-euro investments.

The Myth of “Not Enough Space”

Most businesses assume they don’t have enough space—but the data often tells a different story.

Desk Utilisation Gaps: Studies show that in hybrid offices, up to 40% of desks sit empty at any given time, even on busy days. (Leesman, 2025)
Meeting Room Inefficiencies: Research indicates that 60% of meetings take place in rooms that are too large for the number of attendees. (VergeSense, 2025)
Peak vs. Off-Peak Use: Many offices operate at full capacity only 1-2 days per week, with significantly lower utilisation on other days. (Microsoft Workplace Insights, 2025)

This means that many organisations already have the space they need—they just aren’t using it effectively. Instead of defaulting to expansion, companies should first assess and optimise their current footprint.

The Smarter Alternative: Occupancy Studies

Before committing to expensive expansions, forward-thinking companies are turning to manual occupancy studies - a methodical approach to tracking workspace usage in real time.

For a fraction of the cost of an expansion, a 3-week occupancy study can:

Pinpoint underutilised desks and meeting rooms
Reveal peak vs. off-peak trends
Identify areas that could be optimised or repurposed
Provide clear, data-backed recommendations on whether expansion is necessary—or if the same space can be used more efficiently

These insights help businesses avoid costly real estate decisions and instead focus on making the most of the space they already have.

A manual occupancy surveyor doing the rounds

Making Data-Driven Workplace Decisions

Expansion should be a last resort, not the default response to workspace challenges.

By first conducting a manual occupancy study, businesses can:

Validate the need for more space before committing millions
Optimise existing space with data-driven workplace strategies
Ensure their real estate footprint aligns with actual business needs

At SiteIQ, we work with some of Ireland’s largest employers—across tech, pharma, higher education, and government—to help them make smarter workplace decisions. With our expertise in occupancy analytics, we uncover hidden efficiencies that can save companies millions.

Before making a million-euro decision, get the data first. Because the best way to expand your workplace might not be expansion at all.