Are you prepared for your upcoming office relocation? Making the move to a bigger office space is one of the most exciting times in any business. Budgeting for this transition, however, is not.
The truth is, office relocations can be minefields of unexpected costs, some of which can be major setbacks for your business. Teaming with a qualified interior design company is a great start, as they can draw on their experience to help you through the process, but it pays to do your own research as well to avoid unwelcome surprises. Continue reading to learn some of the most important hidden costs of an office relocation.
1. Operations price increases
When relocating, we often stop looking at potential price increases once we’ve seen what the new rent will be. When relocating your office, it’s important to consider every residual cost in your existing space and determine what those costs will be in your new space, particularly if you are upgrading a larger office. Bigger spaces often require higher heating and cooling costs. If you’re upgrading to a more modern office building, you may find your insurance costs will rise as well. Cleaning and maintenance will take longer to finish their work and may charge more. Review all your expenditures to find areas where you risk higher recurring costs. Finding these charges early will make it easier for you to prepare for them.
2. Lost productivity
The time your team dedicates to facilitating your office relocation is time they won’t spend delivering on their work responsibilities, and that’s okay! An office relocation is a team effort and some downtime for your employees is unavoidable in the thick of the transition, but don’t forget to factor in that lost productivity to your budget. Considering lost output as an expense is the simplest way to keep your books in order during the chaos of your relocation.
3. IT & telecom infrastructure
Let’s face it: cables, wiring, and servers are mainstays in the modern office. When relocating, your IT and telecom infrastructure can be a mission all on its own. Disassembling and reassembling your IT and telecom setup usually needs to be done by independent professionals, which will be an expense outside your standard moving company costs. What’s more, that setup will need to be retrofitted to work in its new environment. Often, it is wise to consult with your existing IT partner, if you have one, to make this facet of the move run a little smoother.
4. Fees & permissions
Few offices spaces are a perfect fit for their new tenants straight away. Most relocation efforts require a soft fit out to align the space with the needs of the new business, at least. Often, some more severe structural changes are necessary, due either to business demands or to existing damage. Remember that these latter changes almost always require landlord consent, council permission, or both, and often come with fees.
5. Dilapidations & surveys
Unless you’re relocating to a brand-new office space, you must factor in the possibility that some dilapidation issues will need to be dealt with. These problems are easiest to solve before you’ve settled in and resumed your standard workflow. Dilapidations are your obligations to repair damage to the space as stipulated in your tenant lease. Additionally, your lease will also likely require that you assume the survey requirements for your space. Check how often these surveys will need to be conducted and when the next ones are due. WorkSafe offers some helpful information regarding asbestos surveys to make planning easier.
Budget for surprises
No matter how hard you try, a few surprise expenses always sneak through. That’s just par for the course during an office relocation. Setting aside some extra cash in your budget for the unexpected is always wise, but so too is partnering with DB Interiors to make your move a breeze. We’ll help you through every phase of the process, from office relocation project scoping through to the soft fit out of office furniture. Contact DB Interiors today to see how we can help you!