There is a common belief that it is more cost effective to renovate an existing business space than to relocate to a new space. For many businesses, it does make the most sense and is economical to remain in an existing space and renovate it. However, for some businesses, relocating offers more value. Before you decide to renovate or relocate, consider the following five factors.
Construction is extremely disruptive
It simply isn’t possible to have all renovation tasks completed during off hours. There will be times when the office is operating and there are contractors everywhere, creating a noisy, dusty, distracting environment.
When you relocate, you can keep your organization operating at the current location until you have the new office ready. This decision maintains a high level of productivity through the transition.
Sometimes buildings have renovation restrictions
If you are leasing an office space, you will have to obtain permission to renovate your existing space. Most likely there are guidelines in place concerning what you can and can’t do while renovating. You will have to abide by these guidelines to avoid violating your lease.
Typically when you relocate, you move into the new space as is. If you are planning to make changes, you will be able to refer to the new lease and then proceed accordingly.
Construction brings strangers into the building
Construction projects require several strangers to come and go at all hours of the day, which increases the risk of privacy and security breaches. Certain industries, such as medical and legal, must take these risks into consideration during construction to protect the privacy of their patients or clients. You will also have to hire more security and take extra safety measures. These measures include installing video surveillance cameras, which reduce the chances of renovation workers stealing merchandise and other office materials.
A renovation presents multiple unknown factors
A renovation seems like a simple enough concept. However, it’s all but impossible to anticipate all of your costs upfront. Renovating an occupied office building is more expensive than renovating an empty space.
When you are working around employees, you must complete the work in phases to allow day to day operations to continue as smoothly as possible. This process means that the construction will take longer and end up costing more in the long run.
Are you renovating an older building? Older office facilities must be in compliance with building codes, which can lead to unanticipated building expenses.
In comparison, when you relocate to a new space, you know what you are getting upfront. Look for a property that has the amenities that your company is looking for. This search minimizes the amount of time that you spend working on the space before you move into it.
If you are planning to make improvements to the new office, budget for them ahead of time and get them completed before you move in. There will be no surprises and employees will be able to work right away.
A new space offers a clean slate
Moving into a new office gives you a chance to start over in a way that you simply can’t ever accomplish with a renovation. Creating a brand new space that is more inspiring helps retain current employees while bringing in new talent.
Ultimately you want to do what is best for your business with minimal distractions and downtime. Weigh all of the factors involved before deciding whether you are going to stay in your current location and renovate it or move to a new location.
La Junta Economic Development (LJED) supports organizations who are expanding or relocating to the greater Southeastern Colorado area. The community boasts a revitalized and vibrant downtown, ample open spaces, excellent schools, and amenities that rival those of major cities. LJED is closely involved with the chamber of commerce to support small and large companies alike in their efforts to relocate or expand. To learn more about the region and how La Junta Economic Development can assist your business during your upcoming relocation, contact us today. Give us a call at (719) 384-6965 or Contact Us via email.