Office Fit Out or Refurbishment?
Is your office lease coming to an end, and you’re not sure if you should take on additional space or move to a larger office? Perhaps you’ve outgrown your current office, but you’re reluctant to relocate? If either of these situations sounds like you, then you’ll be trying to decide whether office fit out or office refurbishment is best for you.
Office fit out is the process of taking a space and making it ready for occupancy. Office refurbishment, on the other hand, involves adapting your current office to suit your changing needs. Which is most appropriate for you will depend on your unique situation. You may even consider relocating your office.
Every week, we speak to companies trying to decide whether to refurbish their existing office or fit out an additional space. They are often unsure how to make this decision, let alone be confident in it. This is understandable, as office design and build projects take a lot of time, effort and money. If well planned and executed, the ROI can be great, However, a poorly planned or executed project could become a very expensive failure.
In this article, we’ll give you 4 key factors that will affect your fit out vs refurbishment decision. By the end of this article, you’ll understand the major factors impacting this decision, and you’ll be equipped to make the right decision for your company.
Purpose
The first thing to establish is the purpose of your project. Whether you’re looking to adapt your office to suit staff changes or completely recreate the way your company operates will have a massive impact on the approach to the project, and the outcomes.
If you need to have a workspace that allows for hybrid working, then you’ll probably be able to refurbish it. In most cases, transitioning to a hybrid workspace involves reducing the number of desks and increasing collaboration areas, which can often be done within your existing space. If, on the other hand, your staff count has risen in the last few years and you can’t get staff back in the office because there’s not enough room, then you need more office space.
As a general rule, refurbishment is quicker and cheaper than an office fit out. As a result, you should only look to take on more space if there’s an issue with your current space that can’t be fixed, such as the size.
Lease Break
Your lease terms are a critical consideration during the initial planning for any office fit out or office refurbishment. When will your lease expire? What are the chances of renewal? Usually, the best option is to renew, as you save the cost of fitting out a new office and the disruption of moving your people into it.
However, if the space is too small, then you will likely need to take on more office space. This could be another floor in the same building, or in a completely different location. If you have a specific reason for not wanting to renew your existing lease, then you will have to relocate your office.
Space Requirements
Space is one of the few things that you can’t change in your existing office. If you have too much space, then you may be able to split off part of it into a sublet space, not only reducing wasted space but generating additional income.
On the other hand, not enough space doesn’t necessarily mean you have to relocate – you may be able to lease additional space within your existing building. This approach has several major advantages. It is often cheaper, as you only have to fit out the additional space, unlike a relocation. It is also a lot less disruptive for staff.
Cost
While cost won’t change what is best for your business, it can define what is possible. If your company has a very limited budget, there is no point in planning to take on an additional office in a prime location.
This is one of the reasons why it’s so important to work with your leadership team to define your project brief. It is also important for your leadership to be realistic about what you can expect to achieve on the budget they set. To help give you an idea of initial costs, check out our office fit out costs guide.
Making Your Decision
Deciding whether to refurbish your existing office or fit out an additional space is a major decision. You will need to decide whether your existing office is large enough and can be adapted to your current and future requirements, or whether you need additional space. If there are major issues with your current office, you may even want to relocate.
Now that you know about the 4 major factors affecting the viability of your fit out vs refurbishment decision, you’re ready to consider your company’s situation. By carefully considering these factors, you can ensure you make the right decision for your company.
If you think relocation might be a better option, read Office Relocation vs Office Refurbishment – Which is Best for Me? And Do You Need to Move Office? Maybe Not.
