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Everything you need to know about Moving OfficeMoving Office Cost Components
There are a number of office move considerations that will COST you. This guide explains them for you and offers some practical hints and tips as to how they may relate to you.
Office Move Cost Considerations
The payment made by the tenant for the use of the property. Typically the rent is payable quarterly in advance on set dates named in the lease (usually 25th March, 24th June, 29th September, 25th December). The majority of landlords prefer the rental payments to be made by standing order.
Business Rates
Businesses that occupy non-domestic premises are required to pay non-domestic rates, often called business rates. The payments help fund local services provided by local authorities, such as the police, fire & rescue service, refuse collection & upkeep of roads etc.
Service Charge
The service charge is the means by which a landlord is able to recover from the occupiers the cost of providing the services for the benefit of those premises. Items include maintenance & repair of the property as well as the provision of heating, lighting, cleaning, security, etc.
Rental Deposit
Most leases will require the tenant to pay a rental deposit on all new lettings. The amount can vary according to the length of the lease but will typically be between 3 and 12 months. This is held by the landlord throughout the term of the lease & may be drawn upon in the event of any rent arrears or non-compliance with any of the lease covenants.
Property Consultant Fees
A property consultant's main functions is to find you the most suitable property and then negotiate the best financial terms on your behalf. Their role is likely to involve: identifying the right property for you, conducting viewings, advising on the suitability, providing cost analysis of preferred options, negotiating terms, liaising with solicitors, keeping you abreast with progress and monitoring the transaction until completion.
Legal Fees
The main role of your Property Solicitor will be to ensure that the terms which you or your consultant have negotiated are reflected in the final lease. Importantly, they will negotiate the detail of the lease documentation to minimise your exposure to potential liabilities, and subsequently, to advise you on the implications of the detailed terms in the final documents to ensure you are aware of your ongoing responsibilities.
Building Insurance
The depth of the cover will vary depending upon your requirement but a standard Business Insurance Policy is likely to cover: contents (property/fixtures/fittings/stock/equipment) against loss or damage; business interruption; public liability, employers liability and legal expenses.
Stamp Duty Land Tax
SDLT is a transaction tax, payable by the tenant, on the lease of UK land and property. It is generally based upon the value of the consideration provided for in the lease of the land/property.
Fit-Out
The design and delivery of your new office environment will be central to the continued success of your business. Office Fit-out encompasses everything from the space planning, interior design, project management, fitting out and furnishing of your new office.
Furniture
What are your furniture requirements for your new office? Are you going to utilise existing furniture of do you require new? If so, then should you buy or rent - and how are you going to profitably dispose of any unwanted furniture?
IT & Telecoms
You will need to fulfil the continuity needs of your staff & customers, maintain connectivity and relocate your entire IT & Telecoms infrastructure with minimal disruption and within a short timescale.
Removals
You should use a professional office removals company to handle your commercial removal requirements to relocate your business quickly & efficiently, minimising both business interruption and downtime to make sure you are ready to go on that first Monday morning in your new office.
Archiving & Storage
Secure storage and/or archiving of documentation can be a flexible, safe and cost-effective solution to free up valuable and costly office space. It can be accessed at any time by arrangement and provides excellent off-site backup for damage limitation in case of fire or other disaster.
Dilapidations
Most commercial leases lay out the obligations on the tenant for returning the property at the end of the lease in the state in which it was when you moved in (as outlined in the dilapidations section of your lease).
Marketing: update Stationery, Website, Business Cards & Marketing Collateral
You need to make sure that all of your marketing material reflects your change of address and new contact details. Be sure that all printed collateral with your new address arrives with you in good time prior to the move.
Exiting your Existing Office
All office moves create waste. Furniture and other items may not be required in your new office. Some items may have a value that needs realising whilst other goods may be worthless. Either way they will need to be disposed of.
Document Actions
Moving Office Budget
This free, easy-to-use and interactive Moving Office Budget Template identifies your likely office relocation cost items so that you can efficiently manage your office move costs.
Office Space Calculator
Use the FREE Office Space Calculator to work out how much office space you are going to need.
Whether you are expanding or downsizing it is important to understand your office space requirements.
Office Costs Calculations
Rents, Rates & Service Charge
As you start the planning and budgeting process of finding your new office space, it is essential that you have accurate and current information on office rents, business rates and service charges for the area in which you are wanting to locate your new office. Access to this information will cut down on any wasted time looking at unsuitable offices and increase the chance of your company making the right office space decision.
This is yet another key reason why you should always get professional advice – and best practice strongly recommends that you discuss your requirement with a Property Consultant that specialises in the local market where you would like to have an office. Their finger is right on the pulse with regards to movements in the office market and they are the “go-to” people to get up-to-date market data on what you should expect to pay for rent, rates and service charge for your area.
Find out more about the key role that a Property Agent plays in an office move – and learn why companies that choose to be unrepresented all too often end up paying more for their office space.
Contact independently approved Property Consultants that specialise in your area.
Moving Office Costs
Getting professional advice from industry experts makes the whole process of moving office easier and gives you the peace of mind that your business deserves. More importantly, it reduces the chance of overspending and will even save you money in the longer term.
Our Moving Office Guides gives details of independently sourced and accredited companies who provide Office Relocation Services. This enables you to obtain a range of quotes, get best value for money and negotiate the appropriate fee structure that matches your office move requirements.
Costly Moving Office Mistakes
Make sure you don’t fall prey to some of the common moving office mistakes that will end up costing you money. These include:
- Not starting the office move process early enough
- Not getting help & advice from Office Relocation Professionals
Download the Deadly Sins of Moving Office to find out more moving office mistakes and tips on how to avoid them.
Office Lease Negotiations
Negotiating the lease of your new office can be hampered with potential pitfalls that are easily overlooked when the pressure of moving office is on.
If your office lease negotiations are not carried out by a professional, it can result in any number of things going wrong. These might include:-
- Misinterpreting the lease commencement date
- Neglecting long term business strategy and growth plans
- Paying too much rent through lack of market research, poor lease terms and rushed decisions
- Lack of tenant incentives included within the lease
Make sure you instruct a Property Agent at the early stages of your office move project.
