The average office relocation cost contains many types of expenses that business owners often overlook. Here are three major things that can affect what you’ll be paying before you even set your foot in the door.
Furniture
Most office furniture will be in use for several years to come, making it important to select the right equipment for the job. Getting furniture that improves productivity should be your main goal – whether it’s hard, austere benches or plush couches and chairs, you should be getting the kind of furniture that supports your employees the most.
Next, think about what it will truly cost to get that furniture. You won’t only be paying for the furniture itself – you’ll also have to shell out for the installation of the furniture, especially if it’s meant to be fixed in place or requires special installation and set up.
Don’t forget that many grades of furniture exist. In general, it’s best to focus on high-end equipment for anything customers and visitors will see, then cut back in rear areas and keep things simple yet functional.
Finally, keep in mind that the furniture you choose will have a significant impact on employee morale. Staff who are only given old, worn-out furniture are unlikely to feel valued, and you may see decreased productivity if you fail to meet expectations.
Negotiating with Movers
You may not have an option on the moving part of your relocation cost. Some buildings within the Loop have agreements with moving groups – you must use their mover of choice (or select from a list) and pay at a specific rate in order to move in properly. However, the choices given to you may not be the only choices available.It’s entirely possible that other groups have agreements with the building, or that you’re not actually required to choose from the list you’re given.
In short, do your research about moving companies and make sure you know which companies are acceptable choices. Fortunately, this tends to be a one-time cost and while it may be higher than you’d like, at least it isn’t a cost that you’ll have to pay over and over.
One-Time and Ongoing Expenses
These are the elements that really decide how high your office relocation cost will be. In fact, the two sections above also fall under this, but they’re important enough to be called out separately. For now, we’re going to set aside the costs of the space itself – rent, utilities, operating expenses, etc. – and focus on the additional costs you might not have thought about. Here are common one-time expenses:
- Wiring: Workstations aren’t going to manage much without power and data. In the Loop you will most likely be required to contract with Union providers for these services. Electrical and network connections are a must in the modern office, and this is not an area to wing on your own. Aside from safety and City requirements, your team’s ongoing productivity is hinged to a successful, well thought out installation. Don’t be surprised if costs exceed $500 per workstation to establish electrical and data connections by union tradesmen in accordance with City codes!
- Security Deposits: These aren’t fees, exactly, but they will use up a portion of your cash and lock it away from your use. You will want to make the amount of the securitization a topic during your lease negotiations, including a burn down option if possible. (This is where you are given back some of your deposit as the lease matures.)
- Security Guards: Not all buildings have on site security, but if yours does, be prepared to pay for afterhours security guards if you are moving in during the evening or weekends. Typically, a dock that is controlled by buildings security guards closes before 4PM daily. That move you planned out so carefully to not affect your work day may just have cost you a few hundred dollars for the guard to watch you move in!
- Elevator Fees: To help a move go smoothly, buildings will often reserve one elevator for your use or designate the freight elevator yours for after hours. Either way, be prepared to pay for some of this convenience or negotiate it out before you sign the lease.
At the same time, there may be some ongoing expenses associated with your move, including any special services or support that your business needs.
Conclusion
Your office relocation cost is more than the sum of its parts. Every day you spend moving is a day you aren’t spending on improving your business, building new relationships with customers, or designing new goods and services. In other words, loss of productivity is also a cost – and you can save a lot of money by writing a plan for your move.
If you feel like you’re spending too much time on it, consider hiring some help to take care of things for you. This can cover everything from finding an office that meets your needs (and your budget) to locating moving companies and finding the most appropriate furniture. Either way, being organized can help keep your expenses down and prevent problems before they even begin.