6 Most Common Office Relocation Mistakes

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David LawsPartner at Matthews & Goodman

Tuesday, November 24, 2020

Your office is much more than a place of work; it’s a catalyst for efficient, collaborative and productive practices that add value to your top and bottom line and help to attract and retain talent.

Article 5 Minutes
6 Most Common Office Relocation Mistakes

However, according to a survey of almost 1,000 UK workers, almost half were willing to leave their job because their office is ‘unappealing’. In addition, 45% said it might encourage them to look around for a new job.

Relocating to a new office isn’t something that many organizations often do, so it can seem daunting and disruptive. It should be seen as an opportunity to start with a clean sheet and create a working environment that’s efficient, practical, more indicative of the organization’s culture and brand, as well as proving more conducive to enhancing positivity.

Over the last few months, almost over 60% of UK workers and 70% from the US operated remotely because of COVID-19. Many still fear returning to work, which presents a major challenge for organizations currently working on their return-to-work strategies and plans. Trying to integrate physical distancing protocols means that they’ll have to pay full price to accommodate 40-60% fewer people in a workplace. Suddenly, relocation becomes a very real possibility.

In a poll conducted on LinkedIn by Matthews & Goodman, over 70% of office professionals said they don’t currently have enough space to keep office workers safe during the pandemic if all staff were to return. Despite this, almost 60% of those polled are planning to or have already returned to the office.

Office relocations create opportunities to improve business performance and plan strategically for the future. However, a move is always accompanied by a few challenges. Appropriate planning, preparation and guidance from people who do it for a living can save you from a multitude of expensive and avoidable mistakes.

Here are six of the most common mistakes people make when moving offices and how to avoid them to ensure your relocation process runs smoothly:

1. Inadequate defining of the brief/requirements

The starting point must be:

  • Establishing your rationale for moving
  • What your current and future requirements will be
  • Location – what’s the optimum choice bearing in mind cost limitations, employees’ needs and proximity to client/partner/supplier/staff

Future-proofing your move is critical. It will prove an expensive mistake if your property strategy isn’t aligned to your business plan and commercial strategy. If you intend to contract or expand the business, work with a property expert who will advise you on how to plan for this, whilst accommodating your current team in the short term.

Think about what purpose the environment will serve and how you plan to use the space. What’s the best combination of desks, break-out and collaboration zones for informal brainstorms and discussions? Have you considered rooms for more formal meetings, as well as staff welfare and socialising areas?

2. Unrealistic time allocation for the move

In office relocation, it’s that things always take longer than you think. You’ll probably find yourself waiting for:

  • The commissioning of a comms survey
  • A third-party wayleave agreement might need to be signed
  • Fit-out plans might require a License for Alteration
  • Lease documents will require reviewing by a solicitor and a surveyor
  • Organising and implementing the right comms/IT infrastructure
  • Layers of approval processes for final sign off

For most organizations, the move is masterminded by a non-property professional who’s also juggling their core business activity.

3. Failing to calculate the cost of moving accurately

Beyond removal and fit-out costs, most people budget for solicitors’ fees, tenancy agreements deposits, potential new furniture purchases and costs associated with updating stationery, signage, vehicles, website, etc.

However, some fail to allow for costs that aren’t immediately obvious, such as:

  • Dilapidations - repairs required at the end of a tenancy/lease to restore the premises to its original condition
  • Commissioning a pre-acquisition survey, which will help you make informed decisions based on data concerning the fabric of your intended office, potential liabilities related to mechanical and electrical systems, and so on
  • Contractual obligations, including break clauses, rent reviews and dilapidation agreements, as well as end-of-lease costs outlined in your current lease
  • The cost of any potential downtime
  • Installation of new communication and security systems

4. Lack of engagement with all stakeholders

Given the fact that any move is critical to the organization’s future, its most valuable assets - talent - should be engaged with the process as early as possible. Their buy-in is critical in terms of retention, as well as ensuring that the ‘business of your business’ continues seamlessly, even when everyone is elbow deep in packing cases.

Moving offices should be an exciting time for everyone: take advantage of this by involving them in the relocation process. They might even help you find the perfect premises.

What do they want from their workplace? A recent Matthews & Goodman survey concluded that UK office workers wanted:

  • A tidy workplace
  • Natural light
  • Good transportation links

Their least important drivers were:

  • A good kitchen
  • Having the latest gadgets
  • A comfortable break-out area

5. Going for the cheapest option

There’s an old saying: “buy cheap, buy twice”. A cost-first approach, which fails to fully accommodate brand, commercial and HR imperatives will quickly prove an expensive error.

6. Trying to be the expert

Your workplace is your second most expensive outgoing, so unless you’re a property specialist, you should appoint a qualified surveyor to help you through the process.

They’ll advise and often act on your behalf when dealing with issues such as:

  • Negotiating the optimum terms on your new workplace
  • Reviewing lease terms and ensuring you minimize your exposure – in the short and the long term
  • Calculating fair dilapidation terms to minimise your exit costs
  • Helping you define your true occupational requirements and how best you could use the space

Communication between client and advisor is critical. Advisors must listen to what their clients say and dig deep to ensure they really understand what their clients’ requirements are and will be. But clients should also heed the advice they’re given and question things they might not understand or agree with. Transparency and honesty are critical to avoid mistakes.

Before even starting this process, you have to decide whether you should move or stay where you are. You need to consider the size of your workforce and define your reasons for moving, along with any potential requirements you’ll have. There’s no substitute for a discussion with a qualified and informed surveyor with deep local market knowledge.

David Laws

David has over 20 years’ experience providing owners and occupiers of office spaces with advice. He takes a strategic approach to business space, ensuring it meets the needs of his clients’ financial, operational and cultural goals.

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