When companies grow or face market changes, they are often faced with a key question: Is it better to move our office to a new location or expand in our current location?
In response, we must say that: The decision of whether to move to a new office location or expand in your current one depends on your specific needs, budget, scalability, and circumstances. It’s better to move if your current location limits growth, raises costs, or affects employee access. Expansion is better if the site supports future growth, keeps costs manageable, and minimizes disruption.
Growing out of your current office space is usually a reason to rejoice.
It means that your company is doing well; you are satisfying your customers and achieving ambitious goals! Nice work!
One of the most challenging decisions a business owner faces is figuring out how much office space he or she will need.
Whether the decision is to move to a new location or simply a restructuring and reorganizing of existing office space, it’s important to think the process through carefully.
A well-thought-out, smart decision regarding office location and office design will keep your business flourishing for years to come!
There is much to consider beyond your physical address.
Companies will need to think about a whole host of important issues, such as workforce availability, cost of living, tax concessions, etc.
In this article, we will help you make a decision by considering various dimensions that will not only meet your organization’s needs today but also ensure its future.
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The Decision-Making Framework: A Step-by-Step Guide
Step 1: The Needs Assessment
- Define your “Why”: The first and most important step in assessing needs is to determine exactly why you are considering change.
Your main reason could be different: maybe your organization is growing and your current space is no longer accommodating your growing team; maybe your current office’s running costs are high and you’re looking to cut costs; or maybe you want to create a new organizational culture and your work environment needs to reflect this change.
It may even be that your only reason is the end of the lease, and that’s why you’re thinking about other options.
Clarifying the “why” is like a compass that guides all subsequent steps.
- Involve Key Stakeholders: The decision to relocate or expand an office is a matter that affects the entire organization.
Therefore, it is necessary for key stakeholders to participate in this process.
Involving employees, managers, and leaders of the organization makes decision-making more realistic, efficient, and accepted by everyone.
- Evaluate Your Current Space: Many organizations quickly conclude that the current space is no longer sufficient, but in fact, the real problem often comes down to inefficient use of space.
Before making any big decisions, you should carefully examine the current situation.
This will determine whether you really need to move or expand, or whether you can optimize and make the current space more efficient by changing the layout and managing it better.
Step 2: The Financial Blueprint
After you’ve clarified the needs and reasons for the change, it’s time to think about money.
Deciding between relocating or expanding an office without a detailed financial plan may leave the organization with unforeseen costs and financial strain.
- Expansion Costs: If you decide to stay in the current space and expand it, the majority of the costs will be related to renovation, redecorating, and purchasing new furniture.
This scenario is usually less expensive than relocation, but you should still be aware that renovations and expansions can disrupt daily operations for a while.
- Relocation Costs: Moving an office to a new location naturally involves higher costs and must be carefully planned.
These costs include moving company fees, legal fees, paying a deposit for a new lease, moving and setting up IT infrastructure, as well as purchasing new furniture or equipment.
- Hidden Costs: In addition to direct and obvious costs, you should also pay attention to hidden costs.
For example, during a relocation or renovation period, some of the productivity of employees may decrease because their concentration is temporarily disrupted.
Relocation can also lead to dissatisfaction or even employee turnover, especially if the new office is not suitable for them in terms of accessibility or amenities.
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Step 3: The Location and Logistics Analysis
- For Relocation: If you are planning to move, choosing a new location is one of the most crucial steps.
You need to examine different neighborhoods and areas carefully.
Employee commute time is a key factor; if the commute becomes longer or more difficult, the likelihood of dissatisfaction or even job abandonment increases.
Additionally, access to amenities such as restaurants, cafes, parking, or public transportation can improve employees’ daily experience.
- For Expansion: If you plan to stay in your current location and expand the space, you should check the building conditions and the current lease agreement.
The most important question is whether there is enough space for expansion in the building or on the adjacent floors.
Will the new financial or legal terms be cost-effective for the organization?
These reviews determine whether expansion is practical and cost-effective in the current location.
Step 4: The Cultural and Employee Impact
- Communicate Transparently and Early: Any office-related change, whether it’s a move or an expansion, has a direct impact on employees and organizational culture.
So the first principle is to communicate honestly and transparently with employees from the very beginning.
This communication can include public meetings, informational emails, or even interactive workshops so employees can raise their questions and concerns.
- Highlight the Benefits for Employees: In every decision, it is necessary to show employees what the benefits of the change will be to them.
For example, in a move, the new office may be equipped with better facilities, easier access, or more modern office cubicles and workspace.
In expansion, the existing space may become more open and comfortable, providing better opportunities for team collaboration.
Clearly explaining these benefits helps employees see change as an opportunity and progress, not just a burden or cost.
- Flexible or Hybrid Work Policies: One important aspect of cultural and employee impact is the type of work policy the organization has.
If flexible or hybrid working is enabled, the need for extensive physical space is reduced.
This can help reduce costs, increase employee satisfaction, and improve productivity.
Also, employees who have more flexibility in their work schedule feel more empowered and free in the workplace, resulting in a more positive organizational culture.
Step 5: The Final Decision
- Weighted Matrix or Pros and Cons: Once all the previous steps have been completed, it’s time to make the final decision.
The best way to do this is to use a Weighted Matrix or at least a Pros & Cons list.
In a weighted matrix, each important factor receives a weight proportional to its importance, and each option is scored based on these criteria.
This method makes decision-making objective and data-based and prevents emotional or one-dimensional decision-making.
- Alignment with Long-term Goals: The key point is that the best option is not always the most immediate or least expensive.
The final decision must be aligned with the company’s long-term goals.
For example, if the company’s goal is to develop its brand and attract top talent, it may be more worthwhile to move to a better location with modern facilities, even at a higher cost.
Conversely, if the main goal is to reduce costs and optimize resources, expanding within the current office may make more sense.
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The Case for Office Expansion
When It’s the Right Choice
Office expansion usually makes sense when you are satisfied with the current location and the team is comfortable with the current work environment.
If there is adjacent space for expansion and your need is short-term or medium-term, expansion could be a good option.
Pros of Expansion
One of the biggest benefits of expansion is cost savings; an office expansion is usually more economical than a complete relocation.
Additionally, there is less disruption to daily operations, and the organization can continue its activities with minimal downtime and stress.
From the employees’ perspective, morale is better maintained; commute times do not change, and a sense of stability and security remains in the workplace.
Also, by staying in the current location, you can maintain geographic location advantages such as proximity to key customers, talent pool, and local amenities.
Finally, maintaining the organizational environment and culture is another benefit of expansion, as employees remain in an environment familiar with the company’s values and culture.
Cons of Expansion
Despite its benefits, expansion also has its limitations.
The first is that it is not a long-term solution and may not address fundamental problems or future growth needs.
Even small renovations or expansions can cause temporary disruptions, such as construction noise or restricted access to parts of the office.
In addition, the building owner may not have enough space, or the terms of the lease may be restrictive.
Finally, there are design limitations; you are tied to the structure and layout of the existing building and cannot make major architectural changes.
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The Case for Office Relocation
When It’s the Right Choice
Office relocation is usually logical or even necessary when the current space is no longer sufficient or suitable.
For example, if the lease has expired, or the organization needs to rebrand, or the office location needs to change to access new markets and talent, relocation is the best option.
A new location can also provide opportunities for growth and improvement when the current office is not responsive due to physical, technological, or team capacity reasons.
Pros of Relocation
One of the biggest benefits of relocation is the unlimited growth potential; you can choose a location that meets your organization’s plans for the next 5 to 10 years.
Relocation can also create strategic advantages; for example, proximity to talent sources, key customers, or moving to a more prestigious business area.
This opportunity allows the organization to create modern infrastructure, including advanced technology, efficient equipment, and energy-efficient offices.
Additionally, a new environment can provide an opportunity to refresh the organization’s culture and brand and boost employee motivation with a new atmosphere.
Designing an office from scratch also allows for optimal layouts that meet current and future needs, including hybrid work models.
Cons of Relocation
Despite the benefits, moving comes with a high cost, including transportation costs, new furniture, technology, and IT setup.
In addition, it causes significant disruption to daily operations and psychological stress for management and employees.
Another risk to consider is the possibility of losing employees; if the new location is inconvenient or far away for some people, it may cause them to leave their jobs.
Ultimately, relocation is a complex and carefully planned project that requires a dedicated team to manage every step.
Conclusion
Deciding between expanding or relocating an office is one of the most important and impactful choices any organization must make on its path to growth.
Both paths are valid and practical strategies that can be successful depending on the organization’s circumstances, long-term goals, budget, and employee needs.
However, each option comes with its own set of opportunities and challenges; expansion may be less costly and maintain workplace stability, while office relocation service can allow for unlimited growth, brand enhancement, and workspace redesign.
In this article, an attempt has been made to examine all strategic, operational, and human dimensions of this decision.
The goal was to enable managers and executive teams to choose an option with a comprehensive and data-driven view that not only meets immediate needs but also ensures the organization’s long-term growth and success.
At ROSI, Inc., our trusted advisors provide high-quality, low-cost luxury office furniture to companies that are moving, upgrading, or expanding.
We love making offices more effective and are looking forward to analyzing your office space needs to maximize the efficiency of your office and its interior space with our furniture space planning service.
Contact us today for your free consultation and build your office!
John Ofield is a recognized expert in the office furniture and office cubicle industry in Houston, TX, with over 40 years of experience. As the founder of ROSI Office Systems, he specializes in furniture space planning, custom cubicle designs, modern office chairs and tables, and high-quality commercial furniture. John’s expertise helps businesses enhance productivity and collaboration. He is also dedicated to mentoring entrepreneurs and redefining workspaces to inspire success.