Occupancy and Revenue Analytics

Occupancy

Occupancy is the most common key performance indicator (KPI) to measure the success and growth of a shared workspace like a co-working space, serviced office, or business center. Occupancy in most cases refers to the number of units in use in the office - desks, offices, etc.

In OfficeR&D, we define 3 different occupancy metrics that, we believe, are quite important to keep track of when managing a coworking space.

Dedicated Desks (Fixed) Occupancy

Desk occupancy is the most popular and straightforward metric in a shared workspace. It takes into account the difference between the occupied dedicated desks and the total number of dedicated desks. This is why in order to have the system calculate this number for you, you have to assign the occupied dedicated desks to members. 

You can measure the occupancy at a specific point in time, per month, or make a combined chart for the last month and the next few months. Learn more about how we calculate the occupancy.

NOTE: It's good practice to aim for 80-90% occupancy. This rate gives you sustainable revenue, at the same time gives your community an option to expand and grow in the space.

Hot desks (Flex) Occupancy

This is the number of hot-desking members as a percentage of the total number of hot desks multiplied by a Hot Desk Coefficient. The system calculates the hot-desking members based on the hot-desking membership plans. The system doesn't care if the plan provides 5 days of hotdesk usage in the month or 24/7 usage. It only takes the number of purchased plans of type HotDesk for the month you're analyzing.

IMPORTANT: The Hot Desk Coefficient is a number that tells the system what is the targeted occupancy of the hot desks in your space. This number is multiplied by the number of hot desks when calculating the occupancy level. You can set the coefficient under the Settings > Platform > Space tab.

Example: If you've 2 hotdesks recorded in Resources and your hotdesk coefficient is set to 3,5 then your target will be 7. Let's also say that you have 5 active memberships of type Hotdesk.
The system then divides the number of active memberships by the target, in this case, 5/7, we then multiply this by 100 to get the final result of 71,43%.

Cash Occupancy

Cash occupancy is the easiest-to-calculate metric and it gives the most actionable and usable number to understand the performance of your space. When it comes to desks' occupancy, the percentage is based on binary data - checking if a desk is occupied at a certain moment or not. Cash Occupancy takes into account one more dimension - money. It is calculated based on the difference between the money you can make out of your space - the Target Revenue, compared to the money you actually make - the projected revenue. It brings value by showing how well your space is utilized.

NOTE: You can always achieve 100% occupancy when you lower the prices and give many discounts. But then the cash occupancy will drop or stay the same.

Revenue

Revenue is another key performance indicator not only for a coworking space but for commercial shared space or any business in general. OfficeR&D helps you to have a fresh overview of your finances, projections, and historical data. 

Target Revenue

Target revenue is the total amount of money that you can make from recurring memberships. This assumes 100% occupancy - every desk and a private office are occupied and sold at full price. This number usually serves as a good reference point for your sales goals.

Projected Revenue

Projected revenue is the total amount of all memberships that are active for a period of time, usually a month. This is usually a good metric to measure your confirmed, monthly recurring revenue (MRR). We use this number to calculate the Cash Occupancy and other metrics in OfficeR&D. You may have projected revenue for the current month, next month, quarterly or yearly.

NOTE: You may also measure the total amount of leads (or opportunities with more than a 75% chance of winning) combined with the next month's projected revenue.

Revenue in Dashboard/Revenue

Under the Dashboard/Revenue section, we calculate a revenue chart that includes:

  • Revenue from all recurring monthly subscriptions except for subscriptions based on the Service plan type (one-off fees are not included in this revenue amount). 
  • Revenue from opportunities with more than a 75% chance of closing. 
  • Revenue from opportunities with less than a 75% chance of closing.

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