To move or not to move office locations?
If your commercial/industrial or retail lease expiry is approaching, you may think your only option is to renew as it will save a lot of time and money over moving. However, while a move will always be somewhat disruptive to day to day business for a short time, it could be a cost-saving exercise overall. We firmly believe every organisation with an impending lease expiry should evaluate their Stay vs Go options.
Firstly, if your current property is more than 1000m2, you should start looking at your options 18 months before your lease expiry. (if less than 1000m2 you still need to begin the process at least 12months prior) If you don’t allow enough time to investigate, you will be limiting your options, and in some cases, the decision to stay or go will be made for you as you won’t have time to find and move to a new location.
Do you answer mostly yes or no to the following questions?
Is your current office:
- Close to public transport or parking
- Close to service providers – cafes, supermarket, medical centre etc
- Close to customers/clients
- The correct size for the number of employees (complies with OH&S)
- An adequate size if the company was to grow
- Utilising the layout efficiently
- Catering to all work styles
- Cost effective – rent, outgoings, cleaning, parking etc
- Utilising the latest technology to assist employee productivity
If you’re leaning towards a Go decision be sure to consider the following:
What impact will an office relocation have on employees? Will it help improve the current culture or cause unrest?
What will the final costs of relocating, redesigning, and refurbishing the new workspace be, plus signage costs and any landlord incentives? Do these costs stack up against the stay or ‘do nothing’ option?
What are your company’s future goals?
- Reduce costs and downsize
- Grow the number of employees substantially
- Move to a more strategic location for your business
- Initiate change to re-brand and/or change the company culture
Before you decide to Stay or Go you should conduct a strategic needs analysis to identify the correct amount of space your company needs for the number of employees and facilities required against those you currently have and any future requirements, it will also determine if your current space is being utilised most efficiently. A comprehensive and comparative financial analysis of options should also be undertaken. Read more about why your office design should start before your commercial lease here >
If you’re leaning towards a Go decision, the next step is to speak to an independent tenant advisor who can provide unbiased advice on all commercial real estate options available to you. Read more about what a tenant rep does here >
Whether you decide to Stay or Go it’s imperative to make an informed decision that will give the best possible outcome for your business and employees. Many commercial real estate companies will tell you they are an ‘end to end’ service provider and offer real estate, design and construction advice when the reality is they are just a real estate agent and then outsource all other services. Do your homework and ask who is paying the agents fees. An agent is paid by a landlord while a truly independent advisor will be paid by you the tenant.
For more information on needs analysis, moving office, office design and project & construction management please don’t hesitate to contact PCG as we are an independent advisor offering a true end-to-end service.
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