diff --git a/lib/features/modeling/cmd/SpaceToolHandler.js b/lib/features/modeling/cmd/SpaceToolHandler.js
index 685b13ba6..5e7d2a0fe 100644
--- a/lib/features/modeling/cmd/SpaceToolHandler.js
+++ b/lib/features/modeling/cmd/SpaceToolHandler.js
@@ -1,4 +1,8 @@
-import { forEach } from 'min-dash';
+import {
+  forEach,
+  groupBy,
+  keys
+} from 'min-dash';
 
 import {
   resizeBounds
@@ -6,43 +10,140 @@ import {
 
 
 /**
- * A handler that implements reversible creating and removing of space.
- *
- * It executes in two phases:
- *
- *  (1) resize all affected resizeShapes
- *  (2) move all affected moveElements
+ * Add or remove space by moving and resizing shapes.
  */
 export default function SpaceToolHandler(modeling) {
   this._modeling = modeling;
 }
 
-SpaceToolHandler.$inject = [ 'modeling' ];
-
+SpaceToolHandler.$inject = [
+  'modeling'
+];
 
 SpaceToolHandler.prototype.preExecute = function(context) {
-
-  // resize
-  var modeling = this._modeling,
+  var self = this,
+      movingShapes = context.movingShapes,
       resizingShapes = context.resizingShapes,
       delta = context.delta,
       direction = context.direction;
 
-  forEach(resizingShapes, function(shape) {
-    var newBounds = resizeBounds(shape, direction, delta);
+  var addingSpace = isAddingSpace(delta, direction);
+
+  var steps = getSteps(movingShapes, resizingShapes);
+
+  if (!addingSpace) {
+    steps = steps.reverse();
+  }
 
-    modeling.resizeShape(shape, newBounds);
+  steps.forEach(function(step) {
+    var type = step.type,
+        shapes = step.shapes;
+
+    if (type === 'resize') {
+      self.resizeShapes(shapes, delta, direction);
+    } else if (type === 'move') {
+      self.moveShapes(shapes, delta);
+    }
   });
 };
 
-SpaceToolHandler.prototype.postExecute = function(context) {
-  // move
-  var modeling = this._modeling,
-      movingShapes = context.movingShapes,
-      delta = context.delta;
+SpaceToolHandler.prototype.execute = function() {};
+SpaceToolHandler.prototype.revert = function() {};
 
-  modeling.moveElements(movingShapes, delta, undefined, { autoResize: false, attach: false });
+SpaceToolHandler.prototype.moveShapes = function(shapes, delta) {
+  this._modeling.moveElements(shapes, delta, null, {
+    autoResize: false,
+    recurse: false
+  });
 };
 
-SpaceToolHandler.prototype.execute = function(context) {};
-SpaceToolHandler.prototype.revert = function(context) {};
+SpaceToolHandler.prototype.resizeShapes = function(shapes, delta, direction) {
+  var self = this;
+
+  forEach(shapes, function(shape) {
+    var newBounds = resizeBounds(shape, direction, delta);
+
+    self._modeling.resizeShape(shape, newBounds);
+  });
+};
+
+
+
+// helpers //////////
+
+function isAddingSpace(delta, direction) {
+  if (direction === 'n') {
+    return delta.y < 0;
+  } else if (direction === 'w') {
+    return delta.x < 0;
+  } else if (direction === 's') {
+    return delta.y >= 0;
+  } else if (direction === 'e') {
+    return delta.x >= 0;
+  }
+}
+
+/**
+ * Get steps for moving and resizing shapes starting with top-level shapes.
+ *
+ * @param {Array<djs.model.Shape>} movingShapes
+ * @param {Array<djs.model.Shape>} resizingShapes
+ *
+ * @returns {Array<Object>}
+ */
+export function getSteps(movingShapes, resizingShapes) {
+  var steps = [];
+
+  var groupedMovingShapes = groupBy(movingShapes, getIndex),
+      groupedResizingShapes = groupBy(resizingShapes, getIndex);
+
+  var maxIndex = max(keys(groupedMovingShapes).concat(keys(groupedResizingShapes)).concat(0));
+
+  var index = 1;
+
+  while (index <= maxIndex) {
+    if (groupedMovingShapes[ index ]) {
+
+      if (groupedMovingShapes[ index ]) {
+        steps.push({
+          type: 'move',
+          shapes: groupedMovingShapes[ index ]
+        });
+      }
+    }
+
+    if (groupedResizingShapes[ index ]) {
+      steps.push({
+        type: 'resize',
+        shapes: groupedResizingShapes[ index ]
+      });
+    }
+
+    index++;
+  }
+
+  return steps;
+}
+
+/**
+ * Get index of a given shape.
+ *
+ * @param {djs.model.Shape} shape
+ *
+ * @returns {number}
+ */
+function getIndex(shape) {
+  var index = 0;
+
+  while (shape.parent) {
+    index++;
+
+    shape = shape.parent;
+  }
+
+  return index;
+}
+
+function max(array) {
+  return Math.max.apply(null, array);
+}
\ No newline at end of file
diff --git a/test/spec/features/space-tool/SpaceToolSpec.js b/test/spec/features/space-tool/SpaceToolSpec.js
index 9d931d643..3e51d0565 100644
--- a/test/spec/features/space-tool/SpaceToolSpec.js
+++ b/test/spec/features/space-tool/SpaceToolSpec.js
@@ -13,6 +13,8 @@ import autoResizeModule from 'lib/features/auto-resize';
 import rulesModule from './rules';
 import autoResizeProviderModule from './auto-resize';
 
+import { getSteps } from 'lib/features/modeling/cmd/SpaceToolHandler';
+
 import { isMac } from 'lib/util/Platform';
 
 var keyModifier = isMac() ? { metaKey: true } : { ctrlKey: true };
@@ -629,6 +631,135 @@ describe('features/space-tool', function() {
   });
 
 
+  describe('steps', function() {
+
+    beforeEach(bootstrapDiagram());
+
+    var level1shape1,
+        level1shape2,
+        level1shape2label,
+        level2shape1,
+        level3shape1,
+        level3shape1label,
+        level3shape2,
+        level3connection,
+        level3connectionLabel;
+
+    beforeEach(inject(function(elementFactory, canvas) {
+
+      level1shape1 = elementFactory.createShape({
+        id: 'level1shape1',
+        x: 100, y: 100,
+        width: 450, height: 200
+      });
+
+      canvas.addShape(level1shape1);
+
+      level1shape2 = elementFactory.createShape({
+        id: 'level1shape2',
+        x: 400, y: 350,
+        width: 100, height: 50
+      });
+
+      canvas.addShape(level1shape2);
+
+      level1shape2label = elementFactory.createLabel({
+        id: 'level1shape2label',
+        x: 425, y: 425,
+        width: 50, height: 20,
+        labelTarget: level1shape2
+      });
+
+      canvas.addShape(level1shape2label);
+
+      level2shape1 = elementFactory.createShape({
+        id: 'level2shape1',
+        x: 125, y: 125,
+        width: 400, height: 150
+      });
+
+      canvas.addShape(level2shape1, level1shape1);
+
+      level3shape1 = elementFactory.createShape({
+        id: 'level3shape1',
+        x: 150, y: 150,
+        width: 100, height: 50
+      });
+
+      canvas.addShape(level3shape1, level2shape1);
+
+      level3shape1label = elementFactory.createLabel({
+        id: 'level3shape1label',
+        x: 175, y: 225,
+        width: 50, height: 20,
+        labelTarget: level3shape1
+      });
+
+      canvas.addShape(level3shape1label, level2shape1);
+
+      level3shape2 = elementFactory.createShape({
+        id: 'level3shape2',
+        x: 400, y: 150,
+        width: 100, height: 50
+      });
+
+      canvas.addShape(level3shape2, level2shape1);
+
+      level3connection = elementFactory.createConnection({
+        id: 'level3connection',
+        source: level3shape1,
+        target: level3shape2,
+        waypoints: [
+          { x: 250, y: 175 },
+          { x: 400, y: 175 }
+        ]
+      });
+
+      canvas.addConnection(level3connection, level2shape1);
+
+      level3connectionLabel = elementFactory.createLabel({
+        id: 'level3connectionLabel',
+        x: 300, y: 200,
+        width: 50, height: 20,
+        labelTarget: level3shape1
+      });
+
+      canvas.addShape(level3connectionLabel, level2shape1);
+    }));
+
+
+    it('should return steps', function() {
+
+      // given
+      var movingShapes = [
+        level1shape2,
+        level1shape2label,
+        level3shape2,
+        level3connectionLabel
+      ];
+
+      var resizingShapes = [
+        level1shape1,
+        level2shape1
+      ];
+
+      // when
+      var steps = getSteps(movingShapes, resizingShapes);
+
+      // then
+      expect(steps).to.have.length(4);
+
+      expect(steps).to.eql([
+        { type: 'move', shapes: [ level1shape2, level1shape2label ] },
+        { type: 'resize', shapes: [ level1shape1 ] },
+        { type: 'resize', shapes: [ level2shape1 ] },
+        { type: 'move', shapes: [ level3shape2, level3connectionLabel ] }
+      ]);
+    });
+
+  });
+
+
   describe('redo / undo integration', function() {
 
     beforeEach(bootstrapDiagram({