Office Downsizing Calculator
Hybrid work has left many companies with more space than they need. But downsizing isn't free — there are lease penalties, furniture disposition costs, and move expenses to account for. This calculator helps you see the full financial picture: what you'll save on rent versus what it costs to downsize, and how long until you break even.
What is your current office size?
Total rentable square footage on your current lease.
What is your current rent per square foot?
$3.00/SF/month = $36.00/SF/year · Current annual rent: $900,000
How much are you reducing?
Current and future headcount
Current density: 250 SF/person · New density: 250 SF/person
What will you do with surplus furniture?
Estimated value of surplus furniture
Original purchase cost of furniture you will no longer need. Auto-estimate based on reduction: ~$150,000
The Full Cost of Downsizing
The rent savings are the easy part of the math — reduce 10,000 sq ft at $30/sq ft and you save $300,000/year. But the one-time costs are where companies miscalculate. You'll need to account for: early lease termination fees (if applicable), furniture disposition (moving, liquidating, or donating surplus pieces), build-out costs at the new or reconfigured space, moving costs, and IT relocation.
Furniture disposition is often the most underestimated line item. If you're going from 200 workstations to 120, you have 80 workstations to deal with. Options include liquidation (recover 15-40% of original value depending on brand and condition), donation (tax deduction at fair market value), or disposal (which can cost $50-200 per workstation). The calculator factors in your disposition method and estimated recovery.
Most downsizing projects hit breakeven in 12-18 months, with rent savings exceeding transition costs by a wide margin over a 3-5 year period. The key is to time the downsizing with your lease expiration whenever possible — this eliminates early termination penalties, which can be the single largest one-time cost.