Shakespeare Ponders Relocation

By Diana Robinson, Colliers International

Originally posted on CREW Network – News You Can Use.

To move, or not to move – that is the question:
Whether it is most fitting for a company to engage in a search for new office space and relocate
Or to negotiate the terms, renew the lease and renovate…

Does the thought of Hamlet expounding profound concepts and complex philosophical ideas make you think of commercial real estate? Maybe not. But as companies cautiously consider their expansionary plans and experience the competitive market resulting from low vacancy rates and limited new deliverables, the adaptation of Shakespeare’s opening lines to his most famous soliloquy lend themselves to intriguingly pique your interest around a topic that is among the least favorite subjects companies face… relocation.

Companies tackle the dialog surrounding relocation in their due diligence as they seek to attract and retain talent, navigate organizational change, strive for innovation, encounter technological disruptions and increase their competitive edge. They take the plunge to emerge as leaders adopting WELL building standards, incorporating green initiatives and promoting sustainability strategies to maximize health and wellness improvements of the employees and minimize environmental impacts on the next generations. Lease expiration may be a catalyst for the initial conversation, but there are many factors weighing in on the pros and cons of relocation versus renovation. Let’s consider the five B’s – Building, Budget, Brand, Behaviors and Beauty – and items to include in the vetting process.

BUILDING

• Are you seeking white box space? If so, you will be presented with a shell space that may be more quickly converted into your ideal office.
• Will the renovation encompass the entire office or be limited to collaborative areas and break rooms? Renovations occur while employees continue to work. The need for swing space is reduced, but disruptions may still affect employees.
• Does your current office building have room to handle a renovation or expansion? Swing space must be available throughout the entire renovation. Consider space requirements and limitations. Break rooms, carpet and paint can be completed with limited swing space. A complicated renovation (e.g. complete gut) could entail multiple moves.
• What will it take to bring the facility up to code (elevator modernization, ADA compliance, etc.)?

BUDGET

• Will you have six months minimum to negotiate your lease renewal? Use the time to evaluate the building’s strengths, target the weaknesses, and allow plenty of time for landlord negotiations. Your lease terms could affect your decision to move or renovate.
• Have the average costs for building out an office been calculated? Typically, the range to build out call centers and open offices with standard finishes averages $40-$60 per square foot. Class A office spaces may average $90-$180 per square foot (or more, depending on millwork, wall finishes, flooring and other details).
• Are Tenant Improvement (TI) dollars available to offset your company’s building costs? The goal is to get an allowance to cover many of the planned improvements.
• Is time a critical factor in your decision process? Does your business cycle have a peak season for productivity? If so, moving is usually quicker, easier and presents less interference on productivity than a renovation.
• How much time per floor has been estimated to renovate? As construction activity increases, labor grows scarce and costs increase.

BRAND

• Is your company brand associated with your current location?
• For a headquarter location, what is the highway access? Have you considered proximity to airports, hotels, restaurants and other amenities?
• Is it time to geographically align the company with its strategic partners?
• Does your space’s look and feel reflect your brand’s voice?

BEHAVIORS

• How and where do your employees work best? Is hoteling or teleworking an option to help manage growth?
• Do you need to add or increase the number of collaborative spaces, break areas, phone booths and wellness rooms?
• Where do your current employees live? How will a move impact the average commute time? What are the traffic conditions?

BEAUTY

• Does your planning team include an architect and a general contractor? How something is designed affects how it is finished. Engage your contractor early in the process, and consider looks, function and cost, in the pre-planning exercises.
• Which design trends support the company’s desire to attract and retain talent?
• Are WELL building standards being incorporated in the design?
• What green initiatives may be instituted during the transition?
• How will the new space promote sustainability?

The five B’s and their associated questions are meant to be used as a springboard to achieving your company’s desired look, feel and brand voice, and as a tool to empower companies in the midst of making relocation decisions that support their vision and mission. The next time you or your client is confronted with Hamlet’s paraphrase, you’ll be armed to deliver a commercial real estate soliloquy of your own!

Diana Robinson is a Project Coordinator with Colliers International – Atlanta, LLC’s Project Management Team where she specializes in Move Management. As a Certified Moving Consultant and a Certified Office and Industrial Consultant, Robinson uses her years of experience to smoothly transition companies through renovations and relocations. She has been a member of CREW Atlanta since 2011, and serves as the Chapter’s Co-Chair of Membership, and on the CREW Network Communications and Editorial Committee.

Sources:

The Tragedy of Hamlet, Prince of Denmark, Act III, Scene 1 – William Shakespeare

How to Gauge the Cost of an Office Build-Out, 42 Floors

Commercial Construction Cost Calculator

WELL Building Standard

Sustainability, Environmental Leader

The post To Renovate or to Relocate? Deciding to Move Your Office Space appeared first on CREW Atlanta Blog.