Office Refurbishment or Office Relocation:
6 Important Factors

For most organisations, the cost of commercial real estate is the second highest business cost after the cost of employees which means it’s a key investment that requires a sound strategy. The role of physical office space has been frequently debated among businesses in recent years, as ways of working evolved at a rapid pace throughout the pandemic, leaving many unsure of what their current and future workplace requirements are.

Assessing your office space can be driven by a number of factors, so whether you are looking to refurbish your current space or weighing up the possibility of relocating to a new office, the strategy that underpins your decision needs to be robust.

Is an office refurbishment or office relocation best?

An office move is often viewed as an appealing option as it represents a fresh beginning and a chance to start again. If the businesses objectives require a reduction in operational costs or restructuring the business, it may well be the best option. However, an office refurb can achieve many, if not all the same objectives, and can help save on costly relocation expenses or signing a new lease.

There are so many variables at play that it is important to methodically cover off all the factors and consider your options before making any long-term commitments.

Move or refurbish – 6 important factors to consider

An office fitout can unlock your business growth and realign your objectives to create an inspirational environment for your employees. Before you make your decision on moving to a new office or refurbishing your existing office, here are six factors that you should consider ahead of making any decisions on your office space.

Size of space

To make your workspace as efficient as possible, knowing how much office space you need is a crucial step. Modern ways of working determine that the office now needs to respond to more than simply sitting employees at a desk.

The industry standard that you can use as a basic principle for assessing your office space requirements is 100-150 sq ft per person. This is an average range and will fluctuate based on your sector and business model but does provide a safe bottom line number.

One way of working out how much office space you need is to test fit the space. A test fit is the process of putting your current and projected requirements into a layout plan to see if it meets your current needs and future growth projections.

Leasing the right amount of space is essential as if you don’t have enough, employees will feel crowded and it will be difficult to offer a choice of facilities and work settings. In contrast, having too much space could cause teams to become isolated but fundamentally it is expensive to pay rent on space you are not utilising.

Business downtime

Relocating or refurbishing office space can present significant challenges, particularly when it comes to maintaining business as usual. Moving to a new office comes with various costs but importantly moving to a new location could impact employee turnover, especially if the new site is less accessible for some staff members. Commuting challenges might also lead to dissatisfaction which is why you must consider the accessibility to a new location when planning an office move.

If you decide to refurbish, you will still likely experience some business downtime so this needs to be factored into any plans. In-situ or live site works often mean navigating logistical hurdles, such as coordinating contractors around working hours or moving teams around the office to reduce disruption. If you decide to take temporary office space or for enabling a work-from-home setup during the refurbishment, there can be additional costs associated with this. In addition to regular potential downtime to your business, activities like onboarding new team members or hosting client meetings could prove challenging due to a distributed team.

All of these challenges can be resolved with good forward planning and coordination so thinking through how you will approach your office move or refurbishment as early as possible is key.

Location and building

While the physical office space is the fundamental factor in your search, the building and importantly the location of the building may be the way to identify the best opportunity available to you.

Selecting the right building can be a determining factor in cultivating an engaging workplace experience. Removing as many barriers as possible for getting employees into the office, even if only once or twice a week, can have a positive impact on your workplace culture and occupancy levels.

Before relocating to a new building, it is important to consult with the teams across your organisation to learn about how the office environment could enhance their experience and improve productivity. Taking the time to engage with employees to develop a workplace strategy and listen to their feedback about how the working environment could support them better will ensure your space is aligned with the needs of your people.

Amenities both within the building you occupy and in the surrounding area are also important factors to consider. Things like showers, changing rooms, gyms or coffee bars are increasingly becoming part of the landlord offering within commercial buildings. If you are looking to relocate to a building, this value add might be a determining factor in your decision to relocate or refurbish.

Sustainability and ESG

A key driver for companies assessing their office space is linked to sustainability and ESG goals. With buildings being responsible for almost 50 percent of the UK’s energy consumption and carbon emissions, organisations are looking for ways to reduce their impact.

In a recent CEO Outlook Pulse Survey conducted by EY, findings revealed that sustainability was being prioritised in business by global senior executives. ESG and Net Zero commitments are pushing organisations to make decisions on factors that impact their objectives and real estate is one of those factors.

While new buildings will meet energy performance and efficiency criteria, older buildings are lacking in terms of performance and certification. Depending on what your corporate goals are in relation to sustainability, you may benefit from moving to a new property with BREEAM, LEED, SKA or WELL building standard accreditations. Looking out for these accreditations, as well as other recognised certifications, may assist with your long-term business goals.

Costs

The decision to refurbish or relocate will likely be influenced by cost in one way or another. Whether you want to downsize your office to make a cost saving or invest in your workplace and refurbish the existing office, knowing the financial impact of each option is essential.

Finances will always be a factor when looking at commercial real estate and your ideal business location. Beyond the costs attached to the design of a space, workplace experts talk about the ‘real cost’ of relocating offices.

This will typically include fundamental elements such as:

• Office relocation costs
• Dilapidation works
• Office furniture
• Rent, service charges and business rates
• IT infrastructure
• Business downtime
• Staff turnover

When it comes to assessing the associated costs of a refurb or relocation, you should engage with a workplace design expert or commercial agent that can assist you with explaining the costs you need to be aware of.

Lease Agreement

As the potential tenant, you will want to squeeze as much out of the lease agreement as possible. This generally means that you will want the best space for the least amount of money and ideally on a deal that provides you with flexibility on your agreement.

With demand for Grade A space outweighing the current forecast and development pipelines, it is expected that both the Belfast and Dublin markets will experience supply issues for Grade A stock in 2026. The lack of new high quality office buildings coming through may mean that relocating ahead of this decrease in supply could prove beneficial.

Grade A office space comes at a premium as it will generally offer a lot more in terms of address, prestige and facilities so there is a value attached to this cost. With the increase in demand for Grade A space, landlords in lower quality space will need to offer incentives like rent free periods to attract tenants to their space or move towards upgrading their buildings. This could present some good opportunities for relocating to a new office space but to ensure you’re aware of the current market offering, it is a good idea to see a couple of properties to get an understanding of what else is out there.

In the current market, leases offer a greater degree of flexibility than they have in the past. Make sure you’ve done your due diligence before agreeing any terms – this is where it will benefit you to have a good quality agent and legal team on your side who will be able to get the most of an agreement for you.

How to decide on a refurbishment or relocation

Deciding on what to do with your office space is an important decision and one that needs to be a calculated, strategic investment. Regardless of whether you opt to stay or move to a new space, it is wise to engage with a professional team to help you on your journey. At Calibro Workspace, we can carry out feasibility studies on potential sites to help you build a business case and make an informed decision on the best space for your business.

Our test fit service can assess if your current space (or a new space you are considering) fits with your current and future requirements, arming you with the knowledge required to make an informed decision.

Our team are always ready to help you – get in touch today with one of our expert space specialists:
hello@calibroworkspace.com | +44 (0) 28 9442 5200