Is Moving Offices More Cost Efficient or Re-Designing an Office Space?
When a company is constrained with the workspace available or the office looks stale, they are usually left with two options: redesign the current office space or move to a new one. Each of these decisions comes at a cost with operational, corporate culture, financial and strategic consequences. And many aspects make it easier said than done. As always, balance is key.
We’ll examine both and use our experience to guide you accordingly.
The Cost Associated with Re-location
Firstly, moving office premises involves numerous expenses that might not appear in initial calculations. Beyond the obvious rent increases and physical moving costs, businesses must account for:
– Downtime between moving offices can cause a delay in service provided
– Changes in atmosphere-based patterns may affect employee retention and general job satisfaction
– New suppliers will need to be sought after in the area
– Building and maintaining client awareness of the new location, and continuity
– Potential loss of proximity to strategic partners or customers
Any simple change can compound on an already complicated cost structure. Much research by the British Council for Offices shows proposed relocation estimates already laden with additional costs can reach upwards of 15,000 GBP per employee.
The Transformative Potential of Office Redesign
It is well known that modern office design goes beyond aesthetic appeal. Contemporary workspace professionals view redesigns as complete transformations that address workflow, technology integration, and work patterns. A thoughtful redesign can:
– Efficiently accommodate hybrid working models, which have become the standard in the post pandemic world
– Achieve increased functional capacity of 20-30% through more effective space utilisation
– Decrease energy consumption due to updated systems and improved insulation
– Create spaces that accurately project brand values and corporate culture
– Integrate technology that facilitates new methodologies of work
Notably, many businesses discover untapped potential in their existing premises during professional space assessments. Areas previously considered unusable or inefficient can often be reimagined to serve valuable functions.
Sustainability Focus
The impact of workplace decisions is a growing concern for environmental stakeholders. Redesigning offices tends to be the more sustainable option, especially since:
– Approximately 50-75% less carbon emissions are produced from refurbishing offices as compared to new construction
– Reusable or recyclable materials from existing spaces can be repurposed
– Emission reductions related to office location transport is maintained
– Upgrading old derelict buildings significantly improves energy efficiency standards
These socio-economic factors, in addition the pure financial motives for other organisations who are committed to environmental initiatives, differentiates business decisions.
Employee Wellbeing and Productivity
A workplace affects the wellbeing, productivity, and retention of staff. When considering redesign versus relocation, an organisation is advised to think about:
- The impact of familiarity versus changes psychologically to some team members
- The enhancement of natural light, air quality, and acoustic comfort in each case
- The possibility of incorporating biophilic elements and ergonomic features
- The ability to create spaces that support focused work and collaboration
- The commuting time and work-life balance impact for employees
It is well established that thoughtfully designed workspaces will reduce absenteeism by 15 percent while increasing productivity somewhere between 8 and 11 percent.
Strategic Decision Framework
To identify the best approach, a business needs to undertake a systematic evaluation process:
- Complete the audit of current space utilisation and inefficiencies
- Determine the true cost of each option with distractive operations as a factor
- Project business growth alignment in a 3–5-year window
- Determine impacts for primary stakeholders such as employees, clients, and suppliers
- Analyse the terms of the lease, ownership, and surrounding market for the property
With this approach, every decision is made following extensive analysis rather than partial or preconceived information, making it more reliable.
Making the Decision
Even though each organisation has its own traits, redesign usually surfaces as the favourable option during the following stages:
– Strategic benefits associated with the organisation’s location need to be maintained
– The organisational structure of the existing space is still fundamentally sound
– Relocation is financially detrimental as terms of the lease suggest, and poses significant challenges for business continuity
– The premises have important brand heritage association
As such, redesign may prove useful when the organisation is outgrowing its premises entirely, or when structural obstructions make effective redesign impossible.
Involving specialist consultants to the redesign process is the surest way to achieve successful transformations, as their objective expertise and innovative insights have proven helpful time and again. Opportunities that are often overlooked prior and during the design processes arise because of their numerous project-based experiences.
Rather than viewing the choice as binary, forward-thinking organisations often implement phased redesigns that allow for future expansion or relocation as part of a longer-term property strategy – creating flexible solutions that adapt to evolving business needs. If you’re still unsure of which route to take, consult with us today and we can guide you accordingly.