In the field of facility management, there are four main factors such as people, process, technology and also premises. In this study, factors of premise emphasized where the management of its space is to be managed efficiently and effectively. It is a regularly discussed topic as space management problems occur in any organization especially in higher education institutions. Implications of related cost in physical resources in large organizations such as Higher Education Institutions (HEIs) are very large. The purpose of this paper is to identify the use of space for teaching and learning of the university and develop a space management model towards an optimal space management. The paper aims to show a way on how to solve the space problem by using space charging model. This paper takes Lecture Rooms at the actual usage against the students' time table which was made available by the Academic Management Office of the university (audit). In order to overcome this problem, a space charging model will be implemented where the imposed cost will be charged on the utilized space. The maintenance cost will be determined to get the space tenancy cost from the analysis, level of space usage will be determined whether it was optimum or not. The paper contains a solution to the problem of wasted space by using space charging model which is measured by the use of space in the university. This information is valuable for helping the particular organization especially in Higher Education Institutions to manage space effectively without any wastage of space. It provides a meaningful way for facilities managers to facilitate the decision-making related to space management which can minimize the cost to be borne by the organization.