Office Relocation vs Refurbishment: 3 Important Questions

Relocating or refurbishing an office is one of the most significant strategic decisions a business can make. With real estate costs under closer scrutiny and more companies reconsidering return‑to‑office policies, any decisions relating to physical office space have to be carefully evaluated.

For those planning an office project, the choice often comes down to staying put and refurbishing or moving to a new space, this situation is well known as the Stay vs Go decision. Each option demands thorough planning, but choosing the right path for your company starts with understanding your business goals and establishing key drivers behind the project – factors such as cost, working practices, location, lease terms, and timelines all play a role.

As every business faces a unique situation, there is no one‑size‑fits‑all solution. To help you begin your decision making process, we’ve identified three key questions to consider when weighing up an office move against a refurbishment.

1. Is the size of your office the problem or is it the design?

At the start of this process you really need to understand exactly what the failings of your office are.There are some things that design can fix but if you are outgrowing, or have outgrown, your office or in more unlikely circumstances it is too big, then moving office might be a better option.

Refurbishing your office can be an effective solution to redefining your ways of working and reconfiguring your current layout. While moving to a new office provides you with that ‘clean slate’, you will pay a premium for that and it isn’t always necessary. Through strategic design changes, you can completely reimagine your current space and add in new meeting rooms, collaboration spaces and breakout areas as well as upgrade your tech and other facilities.

This option is only really available to you if your current office space or building is meeting your needs. If you have a lease event coming up, the amenities are poor or there is simply not enough space to accommodate your growth plans then it may be time to move.

When you are weighing up this decision, we advise gathering data on your workplace to make sure you fully understand your options. It is important that you don’t make decisions solely based on what you want, we always advise you to assess what you need.

2. What is your budget?

Knowing how much your project will cost can only be successfully determined once you know more about what your expectations are for your office. Before moving office or refurbishing, you will want to be aware of building a budget that is adequate to deliver the quality of environment that you need. Everything from fit-out, IT, AV, furniture and anything else you need in your office has to be considered in your budget. But creating this budget goes beyond just thinking about the new design of the space – there are several ‘hidden costs’ within office projects that you should know about.

Companies usually view refurbishing as the cheaper option but it’s important not to make any assumptions without fully understanding what work you need to do. In most cases, the top line cost of refurbishment might seem lower, however this is not always the case. In addition, there will be certain items that aren’t visible in the design but will increase the cost of your project. For example, any upgrades to your Heating, Ventilation and Air Conditioning (HVAC) can make up to 40% of your project budget but are hidden away behind the walls or ceiling. Make sure you’re aware of whether your space needs any of these types of upgrades to avoid any expensive surprises further down the line.

Another cost which can be overlooked in a refurbishment or move is the business downtime. Having disruption to your regular business activity can impact productivity. With proper planning and phasing of works, you can reduce this disruption to a minimal amount but it is another thing to be aware of when planning your office project.

Finally another important thing to be aware of is any legal obligations you have committed to within your lease. While you will have lease breaks within your agreement, if you operate outside of these terms you can expect to pay additional fees to exit your lease early. To prevent clocking up the additional fees due to lease terms, make sure you understand your legal stand point on your lease before taking any action. If you need advice on this, a commercial agent can help you navigate these commitments.

3. Should you involve staff in the process?

Keeping your employees involved within the office relocation or refurbishment process is one of the best steps you can take. Maintaining staff engagement in the early stages and throughout the subsequent works is crucial to making the project a success but it also ensures you are reflecting staff requirements within the office.

However, this doesn’t mean that you need to involve staff in every decision you make at the start of your journey. In the stages leading up to your deciding between Stay or Go it is recommended that you capture some form of workplace data – badge data, desk booking or something similar that gives you a sense of how many people are using the space and how they occupy the space.

The People and Place study is a process that underpins many of our projects at Rhino. Through measuring workplace data from our clients’ workspaces, we are able to build a detailed picture of how their workplaces are being used. We’ve seen how valuable data-driven decisions have become for our clients but the engagement work we conduct with staff reveals crucial details that help shape impactful workplace strategies.

Read more about the People and Place study and how it can uncover real insights on your staff’s requirements here.

Taking the next steps

The best way to decide on whether to Stay or Go is to ensure your business goals remain at the centre of your decision making process. As you work through your options with your office space, you will begin to see the steps you need to take to make your office move or refurbishment a reality.

Office Refurbishment can help you to unlock hidden value within your current space, which can save you time and money by making considerable improvements to the way you work. On the other hand relocation may offer your business the opportunity to move to the next stage or take on a space within a more sustainable building with great amenities.

A successful office project requires a combination of strategic decision making, data and  honest conversations with your people. Get in touch with one of our experienced workplace experts today to learn how we can guide you through this process.