Relocation vs. Refurbishment?
Should I Stay or Should I Go?
When it comes to deciding whether to refurbish an existing office or move to a new location, companies have several factors to consider. This is a big decision that can have a significant impact on the company's productivity, employee satisfaction, and bottom line.
In this article by AMH Commercial Projects, we will explore the advantages and disadvantages of refurbishing an existing office and moving to a new location. We will also discuss the factors that companies should consider when making this decision.
Refurbishing an Existing Office
Refurbishing an existing office can be a cost-effective way to update the space and improve employee satisfaction. Here are some of the advantages of refurbishing an existing office:
1. Cost: Depending on the extent of works required, refurbishing your current office can be less expensive than moving to a new location. This is particularly true if your company owns the building or has a long-term lease, so relocation costs, lease breaking costs and associated fees do not come into play.
2. Employee Satisfaction: Refurbishing your office can improve employee satisfaction by providing a fresh, updated space. This can improve morale and productivity, reduce the concerns associated with an office move such as new commuting routes, and retaining a daily familiarity. A freshly refurbished office can help to retain top talent, attract new colleagues and a well-designed office space can also help to promote a positive work culture and encourage collaboration among employees.
3. Minimal Disruption: Refurbishing your workspace can often be done while your business continues to operate, so long as “swing” space is available. This allows day to day operation to continue whilst contractors get on with their tasks at hand. Employees can continue to work while the refurbishment is taking place, and the company can avoid the downtime that comes with moving to a new location and less hassle in changing addresses, phone lines and internet connections.
However, there are also some disadvantages to refurbishing an existing office. Here are a few of the challenges you may face when refurbishing an existing office:
1. Limited Space: Refurbishing your existing office may not be feasible if your company has outgrown the space or new working patterns have reduced office demand. If your business needs more space to accommodate growth or wishes to reduce footprint, moving to a new location may be the best option.
2. Limited Design Options: Refurbishing your space may also be limiting in terms of design options. There may be structural or layout constraints that prevent you from achieving the desired look and feel.
3. Limited Infrastructure: Refurbishing an existing office may also be limited by the building's current infrastructure. For example, it may be complicated to modify wiring installations to support up to date technology, or repair aging plumbing systems.
Moving to a New Location
Moving to a new location can provide a fresh start for the company and open up new opportunities. Here are some of the advantages of moving to a new location:
1. Space Requirements: Moving to a new location can provide your business with more space to accommodate growth. This can be particularly beneficial you if you are expanding rapidly and need room for new employees or equipment. Likewise, should new working patterns and practices be introduced, a restructuring of space can reduce costs.
2. Design Options: Moving to a new location also provides the opportunity to choose an new space and then design the space from scratch. This means that you can create a space that is tailored to its specific needs and goals. You can work with designers to create a space that is both functional and aesthetically pleasing.
3. Infrastructure: Moving to a new location can also provide the opportunity to upgrade infrastructure. For example, faster network speeds could be available along with better environmental aspects (such as solar power).
However, there are also some disadvantages to moving to a new location. Here are a few of the challenges that companies may face when moving to a new location:
1. Cost / Disruption: Moving to a new location can be expensive and disruptive to your day-to-day operations. The process of packing, moving, and unpacking can take time and resources away from your core business activities. In addition, colleagues and staff may need time to adjust to the new location and may experience a dip in productivity during the transition period.
2. Location: Moving to a new location can also be a challenge if your business needs to maintain proximity to clients, vendors, or partners. If the new location is too far away, it may be difficult to maintain these relationships.
3. Lease Terms: Moving to a new location may also be challenging if the company is currently under a long-term lease. Breaking a lease can be expensive and may result in legal penalties. If the company is close to the end of its lease, it may be more cost-effective to renew the lease and refurbish the existing office instead of moving to a new location.
Factors to Consider When Making a Decision
When deciding whether to refurbish an existing office or move to a new location, there are several factors that companies should consider. Here are a few of the most important factors:
1. Cost: Cost is a significant factor to consider when deciding whether to refurbish an existing office or move to a new location. Detailed evaluation of the cost of both options and determine which is more cost-effective in the long run.
2. Space: Companies should also consider their space needs. If your business has outgrown its current space, moving to a new location may be the best option. If you have sufficient space but need to update your workspace, refurbishing your existing office may be the better choice.
3. Infrastructure: Companies should also evaluate the infrastructure provision at your existing office and any new location. If the existing office lacks the necessary infrastructure to support modern technology, moving to a new location may be the best option. Perhaps environmental credentials can be improved. If the existing office has the necessary infrastructure but needs updates, refurbishing the office may be the better choice.
4. Employee Satisfaction: Employee satisfaction has never been a higher priority. Engagement with colleagues when deciding whether to refurbish an existing office or move to a new location is time well spent. A well-designed office space will improve morale and productivity, as well as help to retain top talent.
5. Location: Companies should also consider the location of the existing office and any new location. If the company needs to maintain proximity to certain clients, vendors, or partners, moving to a new location may not be the best option.
6. Timeline: Companies should also consider the timeline for refurbishing an existing office or moving to a new location. Refurbishing an existing office can often be done while the company is still operating, which means that there is minimal disruption to the company's day-to-day operations. Moving to a new location, on the other hand, can take time and may require the company to shut down operations temporarily.
Deciding whether to refurbish an existing office or move to a new location is a big decision that can have a significant impact on the company's productivity, employee satisfaction, and bottom line. Refurbishing an existing office is a cost-effective way to update the space and improve employee satisfaction. Moving to a new location provides the opportunity to design a space that is tailored to the company's specific needs and goals. Companies should evaluate the advantages and disadvantages of both options and consider factors such as cost, space, infrastructure, employee satisfaction, location, and timeline when making this decision. Ultimately, the best choice will depend on the company's specific needs and goals.
If you are still undecided and need some help, get in touch with the experts at AMH Commercial Projects
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