Office cost vs. turnover cost: how to cut space without losing talent

Guide for CFOs: how to turn office spending into a variable cost without shifting the cost to another line of the P&L

When cuts need to be made, finance looks at two things: what fixed costs can become variable, and what savings end up generating a bigger cost somewhere else.

The office touches both. And that's why it deserves more careful analysis than a simple line to eliminate.

30-second summary

• On average, offices are used at just over half their capacity: global utilization was 53% in 2026, according to CBRE.
• Replacing an employee costs between half and double their annual salary, according to Gallup.
• Closing the office lowers fixed costs, but can increase turnover if the team stops meeting.
• An on-demand office scheme, like Desky, converts space into a variable cost: you only pay for the days you meet.

What does an office seat really cost?

The metric that matters is not cost per square meter, but cost per seat used: the total monthly space cost divided by the seats actually occupied on average.

The starting point is real utilization. According to the 2026 CBRE benchmark, average office utilization globally is 53%. That is, almost half of the contracted space is empty on a typical day. The same study notes that office space is the second-highest expense for an organization, and that attendance concentrates mid-week, with Mondays and Fridays almost empty.

An illustrative example: a 20-seat office where the team comes in 2 out of 5 working days has 40% occupancy. The real cost per seat used is 2.5 times what's in the budget, and 60% of the expense is idle capacity.

Add to that maintenance fees, services, cleaning, connectivity and upkeep, which scale with the space and not with use. And the contract: a multi-year commitment that limits your ability to adjust if headcount or strategy changes.

Does going 100% remote save money or just shift the cost?

The most common reaction is to close the office and go 100% remote. The savings are immediate, visible and easy to show on the P&L.

The problem is that the cost doesn't disappear: it moves. It shows up later, in other lines, and is almost never attributed to the decision that caused it.

Slower onboardings, because new hires learn the job but not the team. More meetings to solve what used to take five minutes. Teams that deliver, but without connection to each other. None of these effects appear in the budget, but all have an economic impact.

How much does employee turnover cost?

According to Gallup, replacing an employee costs between half and double their annual salary, and they consider this a conservative estimate. It includes recruitment, team hours spent interviewing, time to full productivity, knowledge lost and impact on customer relationships.

The same study shows that 52% of those who resign say their manager or the company could have done something to prevent it. Much of turnover is preventable.

And turnover has a driver that 100% remote weakens: sense of belonging. When someone's relationship with the company is purely transactional, it breaks at the first slightly better offer. Removing face-to-face meetings from the equation could be the most expensive savings of the year.

How to retain talent without increasing fixed costs?

In a year with no margin for raises or new benefits, retention depends on low-cost levers. One of the most efficient is having the team meet with intention.

You don't need to be in the office five days a week. Planned, purposeful meetings are enough: a weekly or biweekly team day, a monthly planning session, a quarterly offsite, in-person onboarding for new hires.

For finance, the advantage is clear: a bounded, predictable cost tied to specific moments, instead of a fixed structure that you pay for whether it's used or not.

On-demand office: how to turn a fixed cost into a variable one

That's Desky's proposal: you book work spaces for the days your team gets together, and you only pay for those days. From a finance perspective, this means:

• 100% variable cost, tied to actual use and not to contracted space.
• No long-term contracts or commitments that limit headcount adjustments.
• No investment in equipment, maintenance fees or upkeep.
• Simple budget to forecast: meeting days by number of people.
• Scalable both ways: works the same for a growing team as for a shrinking one, or for opening in a new country.

The result is a cost structure aligned with how your team actually works today.

Case studies: companies using on-demand offices in Latin America

It's not theory. Companies of different sizes and industries already manage their space this way across several countries.

@Darwin AI has teams in Brazil and Mexico. Instead of committing to rental contracts in each market, it uses Desky so its local teams have a place to meet when they need to.

@CookUnity organized its in-person week in Peru entirely on demand: the cost of one week of meetings, instead of a space being paid for all year.

@Belong, headquartered in the United States, got its office in Buenos Aires through Desky, without having to sign or manage a rental from a distance.

@Bonda solved its office in Colombia the same way: presence in the country without being tied to a traditional contract.

@B+B Group uses its office in Palermo only on days when its team meets. The rest of the week, it doesn't pay for empty seats.

Different countries and needs, the same financial logic: spending follows use.

The question for next year's budget

Cutting costs is necessary. But a good cut lowers total spending, not just shifts it between lines.

The discussion isn't "office yes or office no". It's two questions: how much am I paying today for capacity I don't use? And how much does it cost me to lose someone because the team has nowhere to meet?

A good starting point: measure your actual space occupancy for a month, calculate the cost per seat actually used, and compare it to an on-demand scheme. The numbers usually speak for themselves.

Frequently asked questions

What is an on-demand office?

It's a workspace that's booked by day or event, rather than rented on a fixed basis. The company only pays for the days its team uses it.

How do you calculate cost per seat used?

Divide the total monthly space cost (rent, maintenance fees, services and upkeep) by the average number of occupied seats. If occupancy is low, the real cost per seat is much higher than budgeted.

Is an on-demand office cheaper than a fixed office?

It depends on utilization. The fewer days per week the team gets together, the greater the savings compared to a fixed space that gets paid for every day.

How often should a remote or hybrid team meet?

There's no single number. What matters is that meetings are planned and purposeful: a weekly or biweekly team day, monthly planning or a quarterly offsite.

Does Desky work outside Argentina?

Yes. The companies mentioned in this article use Desky in Argentina, Brazil, Mexico, Peru and Colombia.

Sources

• CBRE, The Hybrid Reality: Why the Office Is More Important Than Ever (2026 Global Workplace & Occupancy Insights)
• Gallup, This Fixable Problem Costs U.S. Businesses $1 Trillion