How Much Office Space Do You Actually Need? [Ultimate Guide]

When considering how much office space your company requires, take some time to think about your unique needs. For example, how many employees need desks? Do you require private offices or a more open concept? Is a ping pong table a must-have? Conference rooms? Co-working setups? These are all factors when determining space needs.

How much office space do you need?

Office space is not one-size-fits-all. When determining the right fit for your business, consider the Goldilocks Principle. Too little space and you'll outgrow it. Too much space and you'll end up maintaining empty rooms. So how much office space do you need to get it just right?

The average office space required per employee is between 100 and 200 square feet, but this number varies significantly depending on what industry your business is in and the types of spaces you will utilize

For example, tech companies tend to require less space per employee, since they often have remote and hybrid workers. On the other hand, financial institutions and law firms on average require more space because they require private offices and large board rooms for in-person meetings. 

One of the main benefits of having a physical office space is it provides a dedicated workspace for everyone on your team. A traditional work environment also creates a sense of stability and professionalism, which can be important for workers, clients and customers.

However, these spaces can be expensive, especially for small businesses with limited cash flow. In addition to rent or mortgage payments, there are also start-up costs like furniture and equipment and ongoing costs such as utilities and building maintenance.

Before signing on the bottom line, consider all of the costs associated with the space to determine if it's affordable and sustainable.

Determining your office space needs

Purchasing or leasing a physical space is an investment in your business. It's important to consider your current and future needs so you can make the best choice. This may mean waiting for space to open up in an ideal location, or paying more now for space you can grow into. 

Consider the different areas you want or need to incorporate into your office design to help you have a better idea of how much space is required to operate your business well. 

Do you need group work stations? Quiet rooms? Conference rooms? Reception area? File room? Storage rooms? Multiple restrooms? Lunch room? Ping pong table? Once you know what spaces you require, it will inform your search so you can find a space that meets your needs.

Through the process you may even discover you only need a physical space occasionally and opt to use a virtual office while your team works remotely. 

If you're not at a point where it makes sense to commit to a traditional office space but want the credibility and professionalism associated with a proper office, then a virtual office may be the right choice. 

Virtual offices allow businesses to acquire a commercial business address, mail and phone answering services, and often access to co-working spaces and meeting rooms as needed. It's like having your own office space without the overhead or commitment. 

Whether your office space is physical or virtual, it's important to create an environment that suits your company culture and promotes productivity. By weighing the pros and cons of how much office space you need, it will help you make the right choice for your business.


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