Aim: To assess staff satisfaction with the physical work environment (PWE) and its relationship with work engagement and turnover intention through a new hospital's postoccupancy evaluation (POE). Background: The healthcare workforce shortage has intensified globally. POE is a well-established method for collecting information on the success of the PWE. While strong work engagement is associated with lower turnover intention, research on their relationship with satisfaction in PWE in hospitals is limited. Methods: The study used a cross-sectional survey design. Data were collected at a public hospital in Finland from January to February 2024, using a POE questionnaire, the Utrecht Work Engagement Scale-3, and the Turnover Intention Scale. A total of 510 hospital staff members participated. The data were analyzed using correlations and multifactor analysis of variance. Results: Overall satisfaction with the physical work environment was relatively high. Satisfaction in security and safety, comfort, and architecture was strongly correlated with most other PWE categories. Physicians and hospital support and logistics staff were more satisfied with the PWE than nurses. A moderate relationship was found between satisfaction with the PWE and work engagement. The perception of comfort with the PWE and satisfaction with security and safety were moderately associated with work engagement. The relationship between satisfaction with the PWE and turnover intention was weak. Conclusion: The results suggest that when planning new hospitals, attention should be paid to developing the PWE, especially in terms of safety and security and comfort, since it may impact staff work engagement.