Why Occupational Density Shapes Building Value: 3 Lessons Every Developer Must Understand
How a hidden design ratio can drive costs, compliance risks, and long-term asset performance.
Welcome to a new issue of the Unlocking Real Estate Value newsletter. Each week I will provide you with exclusive advice and professional insights to help you realise long-term value through real estate development.
Every office building carries an invisible blueprint: the density of its occupants. This simple ratio sets how many people can legally and safely occupy a floor. It appears to be a number, but it governs infrastructure, user comfort, and life safety.
Today, many seek denser layouts to maximise utilisation and justify rents. That push collides with systems designed to lighter standards. If you want to understand where costs and risks arise, start with this ratio.
Lesson 1: Density isn’t just headcount—it’s a foundational design choice.
Occupational density is usually expressed as 1 person per 10 sqm (1:10). Shift the ratio and the building’s obligations change.
On a 2,000 sqm floor:
At 1:10, you can accommodate 200 people.
At 1:6, capacity rises to ~333 people.
That’s about a 65% increase: minor on paper, transformative in practice.
Every core system depends on that number:
Lifts must handle peak trips within target wait times.
Heating, ventilation and cooling systems must supply fresh air and manage heat loads per person.
WCs must meet code‑driven fixture counts.
Means of escape (stairs and exit routes) must evacuate everyone within set timeframes.
Change the density and you stress the system. Many developers discover this late, after space plans promise desks the base build can’t sustain.
Takeaway: Density sets boundaries for comfort, cost, and compliance. Treat it as a core design constraint, not an afterthought.
Lesson 2: Design mismatches trigger costly interventions.
Pushing from 1:10 to 1:6 is common and where risk compounds.
Lifts: More occupants mean more peak‑hour trips. Queues grow and industry targets (such as Building Council for Offices guidelines for waiting times) can be missed. The issue is often tenant satisfaction rather than pure safety, but dissatisfaction damages leasing prospects.
Heating, ventilation and cooling: Higher density means more fresh air requirements per person and higher heat loads. Expect added air handling units, reworked ductwork and risers (vertical shafts for services) and plant space conflicts. In retrofits, finding space for new equipment is often the hardest (and most expensive) challenge.
WCs: Design population drives fixture counts. If cores are maxed out, you lose net lettable area to add facilities.
Means of escape: Non‑negotiable. Stairs and doors are sized to a design population. Exceed it and compliance gaps appear; in extremes, you need a new stair. An invasive, costly structural intervention.
Developers often assume buildings can flex with occupier needs. In reality, each system is calibrated to a ratio. Push beyond it and upgrades cascade across trades, time, and approvals.
Takeaway: Misalign density and design and you inherit a chain of upgrades that drains time, money, and goodwill.
Lesson 3: Mitigation requires strategy, not shortcuts.
If higher density is unavoidable, begin with a detailed constraint analysis: identify which system (lifts, air, WCs, or egress) is the true bottleneck.
That determines scope, cost, and programme.
Practical options include:
Supplemental systems: Add targeted heating and cooling capacity or redistribute WC facilities on the tenant side.
Redistribution: Spread density across floors to avoid overloading one core.
Reallocation: In multi‑let assets, shift density allowances from under‑occupied areas to high‑demand space.
The best designs future‑proof selectively, often over‑providing egress capacity to preserve flexibility later. Others build strictly to 1:10 with no surplus capacity, saving capital expenditure now but paying in retrofit complexity.
Shortcuts rarely work. More desks with the same infrastructure may lift near‑term rent roll but risks non‑compliance, churn, and reputational damage.
Takeaway: Treat density changes as a design and consent problem. Early analysis and candid landlord–tenant negotiation prevent unsafe outcomes and spiralling costs.
The Bottom Line
Occupational density governs building performance over decades. The most successful developers:
Design with adaptability in mind: creating buildings that can respond to changing tenant demands without triggering major system overhauls.
Identify limiting factors early: understanding that each step toward higher density creates distinct effects across lifts, ventilation, WCs, and egress with different cost profiles.
Balance commercial goals with technical realities: the sweet spot between ambition and integrity is where durable value sits.
As hybrid working reshapes occupancy patterns, density has become a critical value driver. The most valuable buildings don’t maximise density at all costs. They find the balance between commercial ambition and technical capability.
That’s all for today.
See you next week.
— Carlo
Founder and Managing Director Benigni
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This post is sponsored by Benigni a specialist development manager working with international investors to realise long-term value through optimised development strategies. To learn more click this link to our website.
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