Planning to Move Premises?

Moving premises is a major decision for any business - here are 10 useful pointers on how you can reduce the costs, risk and ensure a smooth transition

1. Fit Out - the main cost

The bulk of your costs will fall into the fit out and design of your relocation.  You may want to engage with an office design/fit out consultancy during the early stages so you can plan ahead.  If you have not selected your space, an office design consultancy can help you by calculating the amount of space you need including all services and storage.  Make sure you do not leave anything out, because if you end up with too little space, you will have to move too soon.  Too much space and you are throwing money away.  The cost of fitting out space can be expensive.  In order to keep costs down make sure you:

·         Calculate your current and projected space needs

·         Obtain full cost estimates

·         Space plan the preferred property options

·         Prepare a brief to ensure the fit out and design of your space reflects your needs

·         Ensure mechanical and electrical design has been fully considered and costed

·         Seek your landlord’s permission as early as possible to avoid delays

·         Consider all health and safety issues and the Disability Discrimination Act (DDA)

·         Get a guarantee for completion of works

If you are moving, the first question is usually:  “Can we use what we have got or do we need to buy/lease new furniture?”  But, there are other things to consider as well as cost:

·         Is your furniture practical for everyday work?

·         Do you have enough storage?

·         What will it cost to deliver or re-assemble?

·         Would you be better off renting rather than buying?

·         Are your chairs ergonomic?

·         How sustainable are the materials used?

·         What furniture style suits your new building and your identity?

There is an ever increasing focus on the cost of energy, as prices in the future will surely rise.  You should establish answers to the following:

·         What is the Energy Performance Certificate (EPC) rating of your new building?

·         What recommendations are there to improve the efficiency of the building?

·         What would be the cost benefit of the improvements?

·         How much of the energy procurement is within your control?

·         If the building is multi occupied, what is the landlord’s procurement strategy?

·         How important is energy procurement to your own agenda?

Good property management should ensure future capital costs, especially on the repair and replacement of mechanical and electrical equipment and the exterior building fabric are minimised.  If the building is managed by the landlord, ensure you have full sight and understanding of the service charge budget.  If the building is your responsibility, ensure a proper management regime is put in place from day one.

At the expiry of the new lease, there will be exit costs in respect of reinstatement and dilapidations.  Make sure your legal and property advisors provide you with a plain English assessment as to the extent of your future liability.  It may also be prudent to set up a sinking fund to cover future costs.

The biggest cost is usually the downtime of your staff rather than the removal men.  Being as organised as possible and buying new equipment can reduce it.

Most buildings will not be cabled when you move in or, if there is cabling, it might not be to a suitable standard.  A move is a great opportunity to upgrade your IT hardware and software so explore all your options.  Phone lines also need careful consideration and lots of forward planning.  You must also investigate whether broadband is available and at what speed.  Some commercial premises are not well supported by the required infrastructure.  You will also need to check your new premises have a sufficient power supply and consider the following:

·         Use the move as an opportunity to shop around for phone providers/packages

·         Order telephone connections from your supplier as soon as possible

·         Assess your current set up

·         How many lines and handsets do you need now and in the future?

·         Could an internet based system be better?

·         Can you keep your current phone numbers?

·         Do you need voicemail or a call answering service?

·         How will you let people know about your new numbers?

Check the rate value of your new premises before you occupy and whether it has been appealed before.  There might be an opportunity to get a reduction.  You may also be due some relief during your fit out period when the space is unusable.  Finally, be aware of the opportunity to defer your rates charges.  This is being offered by local councils during the economic downturn.

Consider how all your staff will get to the new premises and determine answers to the following:

·         Is it well served by public transport or a courtesy coach?

·         Is there a car share scheme?

·         Is it easy to find and well signed?

·         Does it have adequate parking?

·         Can your staff access local services during the day?

This is increasingly important to all companies.  How can you attract and retain the best staff?  A pleasant environment with good travel and amenities is essential - as is a good internal working environment for the building you occupy.