Dead stock: admitting what is never going to sell
Dead stock ties up cash and space while appearing as an asset. How to identify it, the options in order of value recovered, and why holding on is the expensive choice.
Space management is the discipline of matching the property you pay for to the way it is used. What to measure, how to read occupancy data honestly, and what to do before signing or renewing a lease.
Space management is the work of matching the property a company pays for to the way people actually use it: how much floor area, in what layout, and which parts earn their cost. It became a live question when attendance stopped being uniform — an office sized for everyone attending daily is oversized for a hybrid pattern, but the same office often lacks the meeting rooms and quiet areas that hybrid work demands. Space management is mostly measurement followed by uncomfortable arithmetic.
Occupancy data is easy to misread in two directions. Averages hide the pattern: an office at 45% average utilisation may be full on Tuesday and empty on Friday, and closing a floor would break the busiest day. Badge data undercounts visitors and anyone who props a door, while room booking data overcounts — booked rooms that nobody uses are one of the most common findings when sensors are added. Where the numbers matter, corroborate one source with another before acting.
Never plan a reduction on the average day. Size the space for the pattern you intend to have, then change the pattern deliberately — for example by coordinating team days — before shrinking the footprint.
Ettex Records suits the tracking side: one table for areas and rooms with capacity and cost, another for daily occupancy counts, and a view of utilisation by zone over time. Combined with data from desk booking, it turns a lease decision into one made from a measured pattern rather than from the loudest opinion in the room.
Occupancy is how many people are present relative to capacity. Utilisation is how much a space is used over time, including hours when it is empty. A room can have high occupancy when in use and low utilisation across the week.
Aggregate and anonymise: counts per zone rather than per person, sensors that count rather than identify, and published summaries. Measuring individuals damages trust and rarely changes the decision.
Continuously, but at minimum for several typical weeks well before a lease break or renewal, so the decision rests on a pattern rather than a snapshot.
Dead stock ties up cash and space while appearing as an asset. How to identify it, the options in order of value recovered, and why holding on is the expensive choice.
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