Space allocation is the process of experimenting with placements of your organizational units ( business

unit, division, department, or functional group) within your company's current or future space. The
planning exercise indicates if your current owned or leased space can efficiently accommodate your
needs or if a space reduction or expansion is required. You experiment with different placements of
organizational units on various floors (allocations) to determine the best way to use your space.
You can allocate your current space, as well as your forecast space needs. For example, you might know
that you will need to increase your space by 20 percent to house a 20 percent increase in staff. You can
experiment with different allocations of this forecast to determine the one you want to implement.
With allocation exercises, you do not officially assign an organizational unit to a specific building, set of
floors, or rooms within the official space inventory, but instead plan out where the organizational unit will
reside. For example, you might decide that a division will reside (be allocated) to floor HQ-18. However,
you do not assign this division to HQ-18 or room within HQ-18 in the official space inventory; instead you
store this proposed assignment in its own table, as explained in the below section.
As you experiment with different space allocations, you can do so with specific goals in mind, such as: