Have you
considered what’s most important? How will you know
when your relocation has been a success? You need to articulate
all the requirements that are core to your business: location,
budget, physical space and type of lease.
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Questions:
How does your existing location rate? • Does your location affect your suppliers
and customers? • Where do your key staff travel from and how do they get to
work? • What image do you want to project?
Define your requirements:
Think about distances and travel time for various modes
of transport. What type of local environment is right? Think
about the need for parking spaces nearby, amenities for staff
and what you expect after dark? Can your suppliers get their
delivery vehicles close by?
Questions:
What’s the optimum floor size and shape?
Define your requirements:
What are your operational requirements – today and in the future? How
will you work as an organisation? How important is privacy for individual working?
Are some of your staff out of the office for most of the time? Do your staff
require designated workstations or can they share from time to time? Do you
have special requirements for storage, equipment, etc.? Do you have any special
IT or security needs? How much break-out or meeting room space is required?
How often will they be used? Will you need special areas for visitors, e.g.
hot-desks, entertaining areas? Will you need a kitchen or can you use a vending
machine? Can you make do with the local café for some of your meetings?
Is there suitable space nearby to hire for occasional large meetings, e.g.
a Livery Company Hall?
Questions:
Do you think you will change your mind on your requirements or budget? What
might happen if you do? Are you ready to commit? • What kind of flexibility
do you really need? • What kind of flexibility are you prepared to pay
for? • Can you incorporate flexibility into your workplace and your transaction?
Would you be better off with serviced offices, or do you really need a place
of your own?
Define your requirements:
What lease provisions do you need to negotiate? How
will you deal with the need to adapt your space, expand or contract
in future? What disposal rights do you need – to assign
or sublet your lease? What alteration rights are essential – to
put up and take down partitions? What other works might be required?
What access rights are needed – to ensure you can access
the space outside of normal hours? How will you arrange any fit-out
to be designed and carried out? Do you have time for traditional
tendering? Is a single design and build package the best fit
for you?
How much are your current occupancy costs? How do they compare to your current
and projected revenues? Remember to include all costs, not just rent, rates
and service charges, e.g. cleaning, maintenance, power, security, etc. Allow
for buildings and contents insurance too. If you cannot reclaim VAT, don’t
forget to add VAT which is usually payable on the rent.
Have you identified the key drivers of cost? Use our Cost Calculator
to identify the impact of your decisions. The amount of space
may be the biggest driver, not just the cost of the space you
acquire. How much can your business afford? Make sure you compare
different options on a like for like basis. Identify what the
impact will be on your Profit & Loss Account.
Set financial targets for total costs as a minimum, but also
look at cost/revenue ratio, cost per person and per workstation
as useful benchmarks.
Do you need to fix costs or can you accept a rent review, if
applicable, based on market rent?
All aspects of relocation involve some kind of risk. Make sure
you plan by identifying key risks, assessing their potential
impact and planning to mitigate their effects. The key risks
include increases in costs, delay in completion and taking too
much or too little space. Think about risks you can control and
risks you can insure against.
When does your new facility need to be ready for occupation
and fully operational? If you work back from that date, does
that leave enough time? Are there key property dates that have
to be met, such as lease expiries or break options, to enable
you to move? Prepare a project plan with actions, milestones
and outputs, using City Relocator as a guide.
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