Corporate Relocation - Hidden Problems-Creative Solutions

With corporate mergers, consolidations and downsizing operations, corporate relocation has become part of the economic landscape. The challenge is that most corporations don\'t understand what they\'re getting into until after they\'ve committed to a new lease. And, by that point, the car has run off the cliff.

Any corporate relocation, even a short move to an almost identical amount of space, can be highly complex. If done wrong it can continue to generate hidden costs and negative productivity issues for years. Thousands of decisions, many having an impact several levels deep, must be made. All risks must be calculated, valuable assets and the long-term viability and image of the firm must be maintained. Strategic planning on all aspects of the relocation must be detailed, carefully thought out, and all the stake holders must be part of the planning and decision process.

No two companies are alike just like any two moves are exactly alike. Strategies therefore, can vary significantly when planning a corporate move. Choosing a new location-while clearly the most critical factor in a relocation-is still just the tip of the iceberg. Then the additional challenges of making the space ready for occupancy will begin. The design, construction, purchase of furniture and supplies and finally the move itself.

Every relocation is unique, and is directly shaped by the user\'s needs and objectives. However, there are some general concerns that must be addressed by every organization considering or planning a relocation. Here is a review of some of those critical issues:

Space Requirements

First, be as specific as possible regarding your company\'s needs in terms of space requirements and location. Make allowances, if possible, for future growth and expansion. Your wish list should plan for all facilities such as telecommunications, heat and air conditioning, elevators, etc. Then try to find the appropriate space (or one which can be appropriately tailored). Its been found to be a mistake attempting to tailor your needs to a specific inflexible space.

Building Maintenance

Is the buildings lobby, elevators and public areas up to your standards and expectations. If unsatisfactory, what plans are there to upgrade these areas? Will the improvement costs be passed along to the tenants? Here is another area to get resolved in the lease negotiations.

Hidden Costs

About 60% of the cost per square foot of new space is the physical space itself and its construction. The other 40% can be categorized as services such as: architectural fees, engineering costs and consulting fees. Moreover, other issues such as security, IT services and AV systems could be included in the 40%.

Many times a portion of the 40%, for example, a consultant recommends the addition of a fiber-optics system, can move over into the 60% category. Get as many of these issues resolved during the negotiation of the lease.

Contractor Access

At times youll find the building has a restricted list of general contractors, construction managers and even sub-contractors. During lease negotiations attempt to retain your flexibility in hiring contractors and if not possible youll have to plan around it.

Building Access

Study the loading dock and freight elevator configuration. What times can they be used? If inconvenient to your move or the building has polices that restrict your access these issues must be factored into your move. Look over your options and if possible negotiate favorable policies prior to the signing of the lease.

Building Rules and Regulations

What are the building rules and regulations? Issues such as occupancy, security procedures, food preparation, parking, windows, and public areas should be fully understood. If for example you need to upgrade the security systems your costs could escalate. Further, make sure the buildings rules and regulations do not hinder your ability to reconfigure your space. Construction access, if restricted, can also run up your costs.

Emergency Power

Do you have need of emergency power? Is it supplied by the landlord? If not, the cost of a generating unit must be factored into the expense of moving. Where will the generating unit be located? Will the area building codes accommodate the storing of fuel for the generator? In addition, if it is anticipated that the power need will grow the unit must meet that future demand.

Tenant Identity

Will your company be identified within the building? Often, if desired, you can negotiate for much more than a directory listing in the lobby. If you are leasing a significant amount of space, the building may be re-named or at least display your company or organizations name in a prominent location. Again this is something to be negotiated prior to signing of the lease.

Conclusion

With the overall complexity of a corporate relocation, many corporations are finding it cost effective to hire relocation service consultants. They will pinpoint problem areas, develop options and overall act as a general contractor to guide you through the relocation. With the help of a knowledgeable and experienced relocation specialist firm you can avoid many of the issues highlighted in this report.

John Groth is a relocation specialist with over 20 years experience. For more valuable relocation ideas and tips http://www.relocationideas.com has it all. Also at http://www.relocationideas.com/blog you can see posts of the latest ideas and tips in relocation and moving.

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