Open Plan vs. Closed Office Layout: Which is Right for Your Business in 2026?

One of the biggest decisions any office-based businesses will have to make is whether to opt for an open plan or closed plan office. For some businesses, this will be a no-brainer, with some needing the privacy of a closed office while others need the collaboration of an open office. For others, the decision will be more difficult to make.

In this blog, we’ll cover the benefits and drawbacks of both office styles to help you choose what your office and employees might need.

What is an Open Plan Office?

Open plan offices prioritise face-to-face interaction, collaboration and networking. The office is structured in a uniform way with employees desked in one room or co-working spaces. Open plan office setups often incorporate cubicles or low partitions separating co-working areas. This style of office can help inspire creativity and innovation or allow for easy communication between team members.

Some open plan setups incorporate closed-off and soundproofed meeting rooms or offices to give those within privacy.

Benefits of Open Plan Office Setups

The best thing about open plan offices is the way they encourage communication, collaboration and teamwork.

This style of office also reduces the sense of an office hierarchy. This can help employees of all ranks to feel included and listened to.

Given their ability to bring people together, those in open plan offices can easily brainstorm with one another, allowing for the generation of new ideas, learning opportunities and innovation.

Open plan spaces also have an advantage in their running and setup costs. They require less construction, office equipment and utility costs.

Given the amount of room there is in an open plan office setting, this can make for a very adaptable and flexible space. Frequently, open plan offices have light and modular furniture solutions for a bespoke furniture arrangement that can be rearranged and moved.

What is a Closed Plan Office?

A closed plan office is often called an enclosed or private office. Unlike the open plan office, employees are situated in segregated spaces such as rooms, cubicles or separate workspaces. This makes privacy an asset of closed plan offices.

This style of set up suits businesses that are handling sensitive or personal information, such as lawyers, solicitors, doctors’ offices or banks.

Benefits of Open Plan Office Setups

Closed plan offices have a lot of benefits. The most obvious benefit is the way they maintain privacy. This can help employees and clients to feel confident that what they speak about will stay confidential. It can also help boost productivity as the reduced noise will allow each employee to work on their projects with increased focus.

This style of set up can help maintain a clear hierarchy, helping employees who work better with a mentor or clear leadership structure. One downside is that it can reduce communication between employees.

Choosing the Right Approach

Ultimately, the style of office you choose should depend on what type of business you run and your team. Remember that you can blend aspects from both styles to enhance your space.

Looking to Change Your Office Layout?>

Ultimate Fitouts can help make your office space work better for your business. From giving expert advice to installing your new office set up, we will help you every step of the way.

Get in touch by filling in the form on our Contact Us page, calling 03 9504 4036 or emailing info@ultimatefitouts.com.au.