Office Refurbishment VS Office Relocation – How to Decide

Are you torn between a refurbishment and an office relocation?

As an office refurbishment company, we understand that it’s a tough decision to make! With many things to consider before taking the next step, from future goals to staff happiness to finances, you can be forgiven for having a cautious approach.

To help you decide, we are going to look at key considerations for businesses on the precipice of change. By assessing the pros and cons, cost implications, recruitment factors and more, we will help you make a more informed decision.

We will also show you some of our own relocation and refurbishment projects to highlight the reasons for change.

Cost

Refurbishment

As you may expect, an office refurbishment typically costs less than a relocation. While a refurb may require some structural changes (e.g. moving partitions), it is essentially a design upgrade, meaning there are no move management fees or the need to fit out a new building.

If you’re not ready to take a financial risk with a new space, staying put and carrying out refurb could be a sensible option. Many consult the help of an office refurbishment company to carry out this work, as it can cover both the design and build.

Relocation

Conversely, a relocation drives higher costs because there is more involved. Here is a rundown of the key factors that contribute to higher costs:

• Rental Increase – If you’re moving to a bigger and better commercial office space, this may result in higher rental fees.
• Office Fit Out Costs – If you’ve invested in a ‘blank canvas’ that needs fitting out, you will fund the design and build work. This includes the installation of work zones, breakout areas, new office furniture, ICT solutions and more.
• Move Management – It’s likely you need to transfer some existing items from your old space to the new. One of the main cost factors with this is IT equipment, as this requires specialist move management services for a safe transfer and installation without the fear of losing sensitive information.
• Dilapidation – Prior to your office relocation, you may need to fund some restoration work on the existing property before you go. This is called a dilapidation, and the amount of work depends on your lease agreement.

Furthermore, competition for good commercial office space can indirectly have cost implications. The old ‘supply and demand’ rule applies here, with the growing need for well situated commercial property potentially driving up costs.

“Commercial office space is relatively easy to obtain, but it’s always the better quality, and those close to amenities and transport links, that are the first to go.”

Parry Anderson – Director, Rap Interiors

Tip: One way to fund a relocation or extensive refurbishment is the finance option. With finance, you can spread the cost of your investment over a set repayment term, meaning your office aspirations could be more achievable than you think.

Location

Following on from our last point on costs, location can be key in a business’s decision to stay or go. Let’s dive into some key considerations:

Refurb

• Proximity to Employees – Arguably, the main case to stay put and carry out an office refurb is the proximity to existing employees. Many of your employees will have built their lives around the location of the office, so moving will risk unsettling them. This, in turn, may force them to seek work elsewhere (unless you can find a suitable location nearby), so it’s worth speaking with them before deciding.
• Identity – If your location is intrinsically linked to your business’s identity, it may be worth staying and carrying out an office refurb. For example, many workplace furniture companies reside in Clerkenwell in London, as this is synonymous with creative companies.

Relocation

• New Talent Acquisition – Are you close enough to a talent pool that can take your business forward? If recruitment is an issue for your business, now may be the time to act to take your business forward.
• Transport Links – As we’ve touched upon, if you are planning to move away, consider how employees will get to the office. If you can find a good space with good train and bus links, this will be good for existing employees while helping you to draw in new talent from further afield.
• Amenities – It’s always a bonus to have a selection of shops nearby so employees can grab a bite to eat, so moving to a location close to amenities is a plus. Equally, if you relocate to a more rural, remote location, you can always introduce catering facilities, like Blends for Friends in Kent.
• Competition – If competitors are moving to better office spaces, you feel like you’re falling victim to the ‘stand still, move backwards’ issue. That said, there’s no reason why you can’t progress with a well-executed workplace refurbishment, as this can also help with talent retention and acquisition.
• Status – Part of your decision for moving could be higher status. As covered by Worktech Academy, many blue-chip companies are moving to ‘heritage’ buildings in high profile areas. A typical example is Apple, which recently moved into the iconic Battersea Power Station in London.

Amount of Space

Refurb

If you’re going to keep your team roughly the same size for the foreseeable future, a refurbishment of your office space could be ideal when combined with considered space planning. When office interior designers develop a space plan, they consider zoning, desk layout, working practices, circulation of traffic, and accessibility to create a workspace that supports your operations.

In essence, space planning helps to make your office as functional and efficient as possible. Rather than relocating, a re-jig might be just the thing you need to give your office a new lease of life.

Relocation

• Upsizing for Growth Plans – Relocating to a bigger office means you are positioned well for future growth. You also have more freedom to configure your layout to complement your working practices.
• Downsizing for a Smaller Workforce – Some companies simply don’t need as much space, such as those switching to hybrid working. With a reduced workforce, relocating to a smaller office and installing AV technology for video calls is a good option.
• Operational Changes – Some companies need to relocate to a bigger space due to operational needs. For example, some companies invest in a new space bring office and production staff under one roof. This helps to improve workflow if they have been operating in separate facilities.

Related case study: Albion Fine Foods

Sustainability

Refurbishment

If you’re conscious of your environmental impact, a refurbishment is a good option. This allows you to repurpose materials, reduce waste, and minimise the environmental impact associated with relocating.

There are also plenty of things you can do to make your existing office more sustainable, such as introducing smart energy efficient solutions such as sensors so lights turn off automatically.

That being said, relocating might not be such a bad option for sustainability either…

Relocation

These days, more developers are breathing life into existing structures rather than tearing them down and rebuilding. Known as retrofitting, this includes upgrades to ensure commercial properties meet the high modern sustainability standards.

Global sustainability goals are also having a big impact on the commercial property industry. For example, buildings in the UK will soon need a higher minimum Energy Efficiency Rating (rising from E to C).

Add to that the fact that 56% of landlord say tenants expect high environmental standard in their commercial offices, and you can see the direction of travel.

In short, by relocating, it’s likely your commercial office will have high sustainability standards – possibly better than those of your existing office.

Related content: 6 Trends Shaping Commercial Office Design

Case Study Examples

Relocation

Royal Philharmonic Orchestra

The Royal Philharmonic Orchestra’s relocation of its admin team to the Borough of Brent in London was both operational and cultural.

The move focused on embedding the team within the diverse community where it had been carrying out education and outreach initiatives for 30 years.

See the Royal Philharmonic Orchestra case study here.

Albion Fine Foods

Albion Fine Foods provides ingredients to restaurants across London and the South East. Having outgrown its existing premises in Tonbridge, it moved to a bigger industrial workspace in Dartford.

The industrial fit out entailed bringing both production and office staff together with a large facility. Key features include a new office space with multiple meeting rooms and a community breakout floor with canteen facilities.

See the Albion Fine Foods case study here.

Refurbishment

WeSoda

As WeSoda is situated in a prime location in the City of London, the soda ash manufacturer opted for a refurbishment.

As part of the London office refurbishment, WeSoda modernised the space throughout while maintaining a high-end corporate aesthetic. This is exemplified in the boardroom design, which includes modern audio-visual equipment, a 20+ person boardroom table, and a bespoke ceiling raft with LED lighting and speakers.

See the WeSoda case study here.

Classic Collection

Classic Collection had been letting out the top floor of its office space to another company. Following the lease expiration, the luxury holiday firm decided to occupy it themselves.

This entailed moving the main Classic Collection office space to the top floor, while the ground floor has become a new multi-use breakout space. The impressive breakout space includes a coffee-shop style seating area and bleacher seating for 50 employees, strengthening company culture and helping to attract and retain staff.

See the Classic Collection case study here

Conclusion: Office Refurbishment vs Office Relocation

Making the decision ‘office refurbishment vs office relocation’ is rarely a simple choice. It is a strategic decision that can define the direction of your company for years to come.

As we’ve explored, the path is a balancing act between numerous factors, from future aspirations to operational factors and finances.

Five good reasons for a refurb:

• You have a location your long-serving employees love, and your team size will remain roughly the same for the foreseeable future.
• Your current space is in a strong location that is synonymous with your business and industry.
• You feel like injecting new energy into your current space will be enough to improve operations and attract and retain talented staff.
• You don’t have the budget to spend on a relocation just yet.
• With help of space planning, your office can accommodate more employees for future growth.

Five good reasons for a relocation:

• Your business has physically outgrown its current office after a period of growth.
• Your operation needs have changed, and you require a new space to improve workflow.
• You want to move to a different location for status or cultural reasons. This offers long-term gains in terms of brand positioning.
• You have enough capital to spend on a move or are comfortable with a fit out finance option to fund a relocation.
• You’re downsizing because you don’t need as much office space. This is common for companies that have switched to hybrid working.

Whatever option you choose, an office refurb or relocation is the start of an exciting new chapter in your business’s journey. Both present a great opportunity to progress in your respected field and be a catalyst for future success.

Are You Considering an Office Relocation or Refurbishment?

Whether you’ve decided to stay put or move on, we’re here to help navigate the journey. With our office refurbishment and office relocation services, we can cover every aspect of your project and put you on the path to a prosperous future.

If you would like to learn about what’s possible for your business, please call us on 0333 600 1234, email refurb@rapinteriors.co.uk or fill out the form below.