How To Calculate The True Cost Of Office Relocation

For many companies, the prospect of moving their office may seem daunting, but it is often an excellent solution for many growing businesses, regardless of their size or field of work. Even though many managers see this process as time-consuming, costly, and difficult, the benefits of having a new and better office space will outweigh the drawbacks.

Most of the costs related to office relocation occur mainly before and after the moving day and include labor expenses connected to internal and external modeling or announcements.

Other expenses may come from new physical item purchases, consulting fees, architect or designer fees, and many other miscellaneous costs. Also, you should factor in the losses that may occur from your clients, or the effects that your move may have on your contracts and work-related deadlines.

A. Planning Costs:

Step 1

The first step includes possible repair or construction costs that may be required by your new office space. You should budget according to your specific needs or tastes, but always contact the building manager to discuss this issue. Get quotes from contractors, designers or architects before signing the contract to avoid large, irrelevant expenses.

Step 2

Choose the employee or external consultant who will plan the whole office relocation process. This person should manage all the aspects of the moving process, including the pre-moving, the actual move, as well as the setting up after the moving process is complete.

Duties include the negotiation of contracts with relocation companies, ensuring that the employees have enough supplies needed for the move, such as packing tape, labels or boxes. Also, in order to estimate your direct costs, you need to determine the exact number of hours this person will spend on this task.

Step 3

Make an inventory of all the company’s assets before you start the packing and relocation process to prevent damage or theft. Also calculate the possible losses caused by damage, lost or stolen items after the moving process.

Step 4

Take into account the costs related to service providers, possible fees, and upfront costs. Services that you should consider include cleaning, cable, electricity, Internet, phone, gas, cable, and others. Also, factor in the costs related to technicians that are required to install the computers, phones and other utilities that will be required at your new location.

B. Office Closing

When leaving your existing office, make sure you determine what must be repaired or replaced, and pay particular attention to carpets, walls or fixtures that may be damaged. Contact your landlord to discuss possible fees, penalties, or commissions stemming from a premature ending of your lease contract. Also, estimate the costs required to terminate your Internet, phone, gas, electricity, and cleaning services contracts.

C. Moving to a new location

Step 1

Make a list featuring the main moving expenses, such as shutting down computers and servers, hiring a relocation company, setting up new furniture and installing new software.

Step 2

Negotiate the relocation process, paying particular attention to the contract and the offer from the company. Look for a set fee for the moving services, as some relocation companies may charge extra for additional services such as packing or extra boxes. These additional costs can go up tremendously, making your moving process a financial nightmare.

Step 3

Consider getting an insurance contract for your moving process. This will help you cover possible losses, damages or thefts.

Step 4

Calculate the possible costs that may come from lower profits, fewer clients, and fewer sales during this relocation period.

D. Other relocation costs

These costs may include the announcements, press releases regarding your new contact address or advertisements in the media. Also, factor in the costs related to printing new personalized stationery with your new contact details, signs, menus, packaging or promotional material.

The writer of this article, Brennen Kliffmueller, is a freelance writer who draws on his experience in management to help other business leaders plan ahead and make the best calls. When it comes time to change offices, he recommends dealing with a contractor experienced in commercial moving such as the ones at You can learn more about Brennen on Google+.