The Complete Guide to Office Relocation:

6 Steps to a Seamless Move

The Complete Guide to Office Relocation:

6 Steps to a Seamless Move

In today’s economy, corporate real estate is seen as an asset, rather than a commodity. It is key when attracting and retaining the best staff – with more companies understanding the importance of creating workplaces where employees are happier, healthier, and more efficient.

Office relocation can be prompted by a variety of causes, from the ending of a current lease to downsizing or business expansion, but it is the ideal opportunity to reassess your current space. Office relocation may seem daunting but it is a positive time when you can take control of your company and future proof it. I have prepared this guide to offer a detailed overview of the six main steps involved in office relocation.

Identify

Firstly, you need to have a clear understanding of how your office space is currently used, so you can plan for the future effectively. In my experience, business owners and managers tend to overestimate how much office space is really occupied in traditional working environments. In 2013, the Workplace Consulting Organisation (WCO) studied desk utilisation and reported that employees spend an average of 34 percent of their time out of the office. In the case of managers, this statistic increases to 45 percent of working hours. Additionally, there are also times when desks aren’t being used due to department or client meetings elsewhere in the building.

Space and workplace audits will take into consideration working patterns within your office, and optimise the space accordingly. The entire workforce of a company is rarely in the office at exactly the same time and different teams tend to vary in the time and duration of peak desk occupancy. In 2015, Advanced Workplace Associates (AWA) reported that on average, 11% of desk space was seen to be in use even when no employee was observed at the desk. The absent employees were presumably still in the building in meetings, working with others, or taking breaks. It also found that Friday is a particularly low occupancy day, as many people work from home or take the day off, leading to a decline in office density by around 10 percent.

Occupancy ratios can be altered in order to change how a company’s new workspace will operate. It’s an opportunity to determine if hot desking or “agile” seating plans will work for you in the future and optimise the workspace accordingly. By auditing your existing workspace and spending some time understanding the requirements of your business, you may conclude that an office refurbishment or new fit-out might not be enough. Relocation to an office that is primed for advanced technological infrastructure could attract and retain Generation X and new Millennial recruits.

An office relocation company like Kubico can assist with the space audit and will consider every aspect of your organisation, from personnel to equipment, to ensure maximum productivity and value. We will take the time to understand how your business operates, the processes you use and your future plans to gain a true understanding of your needs and requirements from the beginning. A good audit will cover:

• Your Organisation’s processes

• Space standards

• Storage and filing requirements

• Workplace usage and efficiency

• Current furniture

• Work environment

Examining the above factors through analysis, interviews with employees, and an evaluation of the workspace will determine the optimum location, size, and type of office your company needs. This will allow your team to work at optimum efficiency, future proof the space to account for company growth, and it will ensure that every square meter of the office has a designated function.

Find your space

Once you have compiled the findings of your space and workplace audit, it is necessary to find a commercial agent to represent your interests as a tenant. Their ability to match your business to the most suitable location is vital to your company’s property selection and business interests.

Agents will initially establish your search criteria by focusing on preferred locations along with the type, value and size of property that you have in mind. Businesses need to consider these points before they meet with an agent and make sure that the commercial agent understands the organisation’s requirements and capabilities. The agent should have transparent fees and enough time to devote to your project. Their value lies in the network of property owners and landlords they can access as a real estate professional.

It is important to consider that larger and more valuable commercial property is sometimes dealt with off-market rather than through mainstream commercial agencies. Similarly, if the company requires discretion, specialist real estate consultants can offer private and hassle-free off-market transactions.

Different lease types must also be considered before settling on a property. A commercial agent can advise you on these but it helps to know the difference between the three main types of leases: gross/full service, net and modified gross lease.

Gross/Full Service lease - all-inclusive rent where the landlord pays for the property’s expenses including taxes, insurance, and maintenance. This makes for an easy, tenant-friendly arrangement.

Net lease - a lower base rent for the commercial space with additional extra costs. e.g. maintenance, operations, real estate taxes. Net lease is usually the more landlord-friendly option. It is subdivided into three additional leases: Single Net, Double Net and Triple Net.

Modified Gross lease - a compromise between the main two leases, similar to a gross lease and more flexible than a net lease. The rent can include any or all of the “nets” (property taxes, insurance, and common area maintenance – subject to negotiation with the landlord), while utilities and care-taking services are covered by the tenant.

Different lease types also have different “allowed uses”, which means that the tenant needs to obtain permission for refitting before signing a contract. Similarly, if the tenant wants to change the use of the premises, planning permission will need to be obtained.

Shortlist and make a final decision

Once you have compiled a shortlist of potential new premises, narrow them down by considering these questions:

• Is it in a good location? (safe and easy for staff and clients to access)

• Are any competitors based nearby?

• Are any potential partners based nearby?

• Are the other tenants reliable companies?

• Are there any quality or noise issues with the building and is it in good condition?

• Is there enough natural light?

• Are the premises’ services sufficient for the size of your organisation? (e.g. Power, HVAC)

Location is very important to employees. According to the 2016 study What Workers Want?, a joint publication by Savills and the British Council for Offices (BCO), 65% of employees aged 18-34 years rated the city/town centre as their preferred workplace location. Ease of access is clearly an influential factor for most employees since 86% of the respondents rated it as the most important criteria. However, 20–25% would be willing to add another 30 minutes to their commute to reach a perfect office. This data emphasises the impact of high-quality office design and fit-outs on employee morale.

At this stage, our design consultant should also offer a feasibility study to help you to determine how much space you need to accommodate your employees. The study will take account of different configuration options and locations of meeting rooms, breakout areas, kitchens, recycling points, etc. Depending on the budget and lease type, the study helps you to calculate the capacity for future growth in your shortlisted buildings and choose the best option from your shortlist.

Our office design consultants will help you assess your shortlist and determine which location best suits your needs by appraising the building and preparing space plans to encapsulate all of your business’ requirements. Space plans are detailed visual aids which overlay the building floor plans with the layouts of furniture and fittings to best organise the design of the workspace.

By developing detailed space plans, you can define exactly where all company employees will be located, the flow of movement throughout the office and the placement of furniture and equipment. In the short term, a space plan will outline the scope of work necessary and save you time, providing you conduct and assess the space plan well in advance of the physical move. By comparing space plans across all shortlisted locations, you can decide which workplace will be the most appropriate for your requirements and allow your business to operate with maximum efficiency.

Choose your procurement strategy

Once you have selected your most suitable new office space and the agent has secured it for you, you’ll need to start the procurement process. Procurement is the method of obtaining the products, materials and services that you will need to deliver the design and fit out of your new office space.

A wise investment into procurement can increase profit levels and create long-lasting relationships that benefit the company and the supplier. The procurement team should have a sound knowledge and experience of the market for the particular goods or service so they can develop an appropriate contract. At Kubico, we are experienced in different procurement methods from single tenders to inviting multiple competitive bids and have an up-to-date knowledge of costs within the design and construction industry. We also offer turnkey solutions, as well as cost-plus contract options.

Engaging our professional design capability can also help you obtain the best value for money in the acquisition of all goods and services. For example, reusing existing fixtures and fittings in new premises to reduce costs, and leveraging an extensive network of suppliers. At Kubico we have experience in negotiating, executing and managing contracts for our clients and we continuously develop and maintain effective relationships with suppliers to be an invaluable asset in the procurement process.

The actual procurement process you choose, however, depends on your timeline and risk comfort. The complexity of procurement makes it difficult to estimate the costs of some services, such as IT infrastructure, and it can be challenging to ensure that cost-effective decisions are made for your business. Given the variety of options available, no single procurement process is appropriate for every project, so the choice of method should be made based on key project objectives.

There are four main procurement routes: traditional delivery, design and build, management contracting, and construction management.

Traditional delivery is common in larger or more specialist projects where the architect or contract administrator leads the project. They appoint a design consultancy in addition to a number of other advisors including an interior designer, project manager, cost consultant, mechanical consultants, IT consultants and furniture specialists. These specialists will work within your allocated budget and engage contractors and subcontractors to deliver the project.

Design and build is usually the more time efficient and cost effective. It provides clients with a turnkey solution that incorporates design, specification, consultancy, construction and project management services all under one roof. It is the preferred route for the majority of companies with small to medium projects because there are fewer financial risks involved. There is a guaranteed maximum price it can usually be completed much quicker than the Traditional Delivery. It also means there is a single point of contact who is responsible for the whole project from design to completion.

Design and build is preferable for companies that are likely to expand with new branches and multiple offices in the future. This approach allows for templates and cost models to be used for future projects, ensuring economic efficiency and a consistently high standard of design. Your chosen office design consultancy can outline your options and advise you on the most cost-effective and sustainable procurement route.

Management contracting is good for high-quality custom projects as each part of the design is subcontracted to a specialist. Contractors are appointed to manage different aspects of the construction of the project, and you have a dedicated project manager as a main point of contact. The design is flexible but there are potential cost implications for any changes that are made throughout construction.

Finally, construction management procurement can be good for complex projects as specialists are appointed for each task. The contractor is appointed to manage the construction of the project through a series of trade contracts, which can potentially cut costs due to the competitive tender process. This kind of contract is good for complex or rapid construction in all types of buildings because construction work can be started before design is finished.

Make it happen

Whenever you are organising a relocation, it’s critical to have the right team. Each member from the designers who come up with the ideas to the builders who make them are important. Their opinions, experience, and expertise add value to every project and the ensure the potential of each space is realised.

Our designers will provide ideas and creative solutions for your new office. They understand how to translate brands and company cultures into colours, materials, and decor. They also know how to maximise space while managing the density of employees.

Specialty Film & Theatre funders Bob and Co benefitted from space planning, mechanical, electrical engineering and design expertise when it relocated to The Tapestry Building, London. The careful space planning and effective use of colours and materials resulted in a slick, crisp environment which reflects the company culture.

Project Managers handle the office construction phase of relocation, overseeing the many specialists involved to complete on time and within budget. They will also handle all the related issues such as health & safety and quality control. For the duration of the project, there would ideally be a single point of contact (a project leader) within your organisation who will liaise with the office relocation specialists to ensure the project runs smoothly. They also should lead a team of representatives from different departments including IT, Marketing and HR. This is to get input from employees when it comes to certain design, fit-out and procurement aspects of the workplace, such as technology systems, branding and staff engagement.

We project managed the media company Way to Blue move to a new office in Shoreditch. The staff were relocated from a two-floor office plan to a single floor to improve efficiency and communications. The floor plan included traditional workstations as well as meeting rooms, break out areas and eating area. Way to Blue 60 strong workforce includes remote workers, so hot-desking was introduced to further optimise their workspace - a strategy that was identified through the workplace audit.

Advances in technology and the introduction of smartphones has meant workers are able to access emails remotely which, in turn, has had a huge impact on the aesthetics and functionality of office space as we know it. For example, hot desking has been adopted by many businesses to save on space and costs. Floor plans are opening up and furniture is being installed with integrated technology such as chargers. Audiovisual technology and advanced IT systems are now standard for most offices and good office designers incorporate better ways to communicate between branches and with remote workers locally and internationally.

Move in and Beyond

Your office relocation specialists will issue your organisation a move checklist, which ensures nothing is forgotten at this crucial stage of the project. They will also manage the physical move to the new offices by appointing a removal specialist ad will work with your company to provide a seamless move.

When the move is complete, your company’s project leader and internal team should organise an informal meeting for all staff. This would introduce the new office and gather feedback on a snag list of changes that need to be rectified.

The relationship with your relocation partner should not end here. At Kubico, we continue to support our clients to ensure the new office is running smoothly with our ongoing Future Workplace Support service.

If you would like help with or advice about office relocation, please contact Kubico for more information.

62-66 Bermondsey Street, London, SE1 3UD

020 3468 2770 kubicogroup.com