The complete guide to office relocation costs

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office relocation costs sorted by company

Office relocation costs depend on numerous factors such as the distance, number of employees, type of furniture and the urgency of the moving and timing. On top of that, there will be other costs that you may not typically associate with moving office, that could easily slip under the radar. In this article, we’ll explain the ins and outs of these business relocation costs.

Cost of packing and moving

As mentioned, before the cost of packing and moving depends on a variety of factors. So here, what we’ll do is provide an estimate so you can identify whether the quote your moving company has offered is competitive or not.

Firstly, you need to ensure that you plan well in advance. If you don’t plan properly then you may run into problems further down the line that add to your office relocation costs. You also need to check that your movers are legitimate – a good way of checking this is to see if they are recognised by a reputable association.

You should expect to pay anything between £3000 and £10,000 for local business relocation costs. You should always shop around and get quotes from different movers so that you can get a good idea of what you should expect to pay before leaping to any decisions.

Additional costs

There are extra costs for businesses when moving office. Hence, it is important to consider these so that you don’t have any unwanted surprises come up later down the line. Extra costs which may be incurred from moving are:

Dilapidation costs

Often it is a requirement that the tenant leaves the premises as they were when moving in. Therefore, you will have to incur dilapidation costs or also commonly known as repair costs. Prices can range from £5 to £20 per square foot and the repair costs will vary depending on the amount of damage to the property.

Hiring a qualified office removal company

You will likely need professional help when moving office depending on the size and nature of your office move. It is advisable to hire a qualified, reliable, and reputable office removal company. This will be anything between £3000 and £10,000 depending on several factors including the size of your office.

Refurbishment costs

Out of all of the individual office relocation costs, refurbishment may be one of the most variable. This is a fee which might be incurred, but this really depends on the condition of your new office and whether it is set out how you would like it.

It’s a good idea to look at this when you’re first looking at moving office and to identify and get quotes for any office refurbishment that will be required. It may just be something like a fresh coat of paint that wouldn’t cost as much. However, if you need the office space changed to fit your business model, for example, this could incur a lot more, making it essential to consider. On average it can cost you between £15 and £65 per square foot. Therefore, it is essential to note what needs renovation early on in the moving process.

Fit out costs

These are similar to refurbishment costs; office fit out costs range from £15 to £65 per square foot. It is important that to make the most out of the available office space you have chosen the right office layout. It’s always a good idea to get advice from a qualified professional on this as they may be able to give some priceless guidance on ways in which to set out an office so that you get the best out of your staff.

Premises survey cost

It’s advisable to always get a premises survey and the cost of this survey depends on the size of the office as well as the level of survey you choose to get. The more detailed survey is, the more expensive the cost will be. A premises survey is carried out by a chartered engineer and designed to identify any problems and issues that could arise in the future. Thus, we recommend you do this to ensure you don’t get any shocks in the years or months to come. A premises survey can range from £750 to £5000.

Solicitors’ costs

The lease term structure and your office size can both impact solicitor costs. These fees can range from £2000 to £8000 depending on whose business relocation services you go for.

Why you need a solicitor to move offices

The landlord and tenant cover their own legal fees, but they have to agree on who is responsible for paying the solicitor legal fees. It’s essential to have a solicitor for this as they will ensure there are no loopholes in your office lease, that everything that has been verbally agreed is reflected in the lease, and that a company’s commercial interests are fully protected throughout the tenancy.

A property solicitor will also clarify any legal jargon that you don’t fully understand and advise you on the implications of the lease terms. This ensures that you are fully aware of your tenant responsibilities, such as rent deposit deeds and licenses to carry out works to the premises. They should also provide advice as to how you are going to “exit” the property upon expiry, so you are prepared well in advance of the lease expiry.

And last but not least, a property solicitor will complete a local authority search to ascertain whether the premises are authorised to use as offices and to find out whether any planning permission is pending on the property and within the local vicinity.

Schedule of conditions cost

This typically costs between £1000 and £2000, but not having a schedule of conditions can come to a far higher figure further down the line with repairs liability.   The schedule factually describes the condition of your new office space at a given point in time and is typically retained for future use when the previous conditions of an office’s premises need to be established. If the conditions are acceptable, then you will agree to a schedule of conditions with your landlord.

Storage

Another cost you may have to consider is regarding storage. To keep costs down during the office move you may want to look toward business storage solutions such as hiring small business storage units or perhaps larger containers. Depending on the amount of equipment and furniture you are storing this could be anywhere between £22 and £88 per week as reported by Checkatrade.

Overview of business relocation costs

The table below shows some of the office relocation costs that you are likely to incur.

Expenses Average cost
Dilapidation costs £5 – £20 per square foot
Office removal company £3000 – £10,000
Fit out cost £15 – £65 per square foot
Property expenses £3,500 – £13,500
Property survey £750 – £5000
Solicitor cost £2000 – £8000
Schedule of condition £1000 – £2000
Service charge increase 5% – 10%

 

The bottom line

Now you should be equipped with all the answers to the question: how much does it cost to relocate an office? Depending on the scale and timeframe of the move, office relocation costs can differ remarkably, but you can make the costs incurred worthwhile with adequate planning, careful consideration of your budget and hiring the best office removal company for the job.