Effective space management remains a fundamental yet frequently underestimated determinant of construction project success, as inadequate spatial planning leads to reduced productivity, congested work areas, inefficient resource movements, and elevated safety risks. This paper addresses the limitations of traditional static space-planning approaches by introducing the Dynamic Location Breakdown Structure (DLBS), a flexible, layered methodology for systematically organizing and dynamically updating construction sectors throughout project execution. The DLBS enables project managers to use architectural drawings and construction schedules to create structured representations of both interior and exterior sectors, organized into sequential layers that correspond to major construction stages—including preparatory work, excavation, structural erection, MEP installations, space division, finishing, and closure. Unlike conventional location breakdown structures that remain fixed throughout construction, the DLBS adapts to the evolving spatial configuration of the site as new areas emerge and existing sectors transform in response to structural progress, temporary installations, and resource deployments. For each defined sector, the methodology establishes four essential parameters: accessibility status (open, restricted access, temporary closure, or not accessible), maximum available area, occupied area, and remaining area. These parameters provide the informational foundation necessary for dynamic spatiotemporal calculations of occupancy rates within the broader Dynamic Modeling of Occupancy Rate Scheduling (DMORS) framework. By integrating DLBS with Chronographic Modeling \citep{Francis2004,Francis2016a, Francis2019a} principles, this research establishes a comprehensive approach to construction space management that enables proactive decision-making, resource optimization, congestion identification, and improved coordination among work crews throughout the construction lifecycle.