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At Relofant, we make it our business to understand the complexities and nuances of a corporate relocation. While every move is unique, some risks are common across all relocations. Here are the top three.

  1. Your relocation timeline may not be realistic.

A corporate relocation involves many components with the potential to delay the overall project schedule. One major pitfall is a lack of awareness surrounding the Tenant Improvement construction process and the required timelines for architectural design, engineering, permitting and construction.  Another hurdle inflamed over recent years is widespread supply chain issues, which have negatively affected building materials and labor.

Preparing a space to meet the specific needs of a tenant will range in complexity depending on the existing physical space and the new space requirements.  Proper planning will help set realistic expectations to ensure a positive relocation experience.

  1. Your budget for construction costs may be too low.

Construction costs related to the Tenant Improvement process are often times budgeted and agreed upon before a Lease is signed.  Any changes to the original scope of work are the tenant’s responsibility.  Not being prepared for this possibility presents a risk because, as Greek philosopher Heraclitus said, “Change is the only constant in life.”

It is essential to identify and document all the space requirements as early in the process as possible and understand the implications of making changes to the design after the Lease agreement is signed.  Once a Lease is executed, reverse-engineering drawings can be costly, both in dollars and time, and evaluating the cost differences may take longer than you think. Changes at this stage can put a significant strain on the project team.

  1. You may end up paying duplicate rents.

The termination date for your current Lease and the Commencement Date for the new Lease are typically fixed dates. However, if circumstances prevent a tenant from vacating their existing space on time, the Landlord may be entitled to a premium rental rate structure known as Holdover Rent.  Holdover Rents are considerably higher than the rent paid while under the original Lease term.

Once the Commencement Date is reached, the Landlord for the new space will likely begin charging rent in compliance with the executed Lease agreement.  In some cases, even if the tenant has not occupied the new space, this can result in overlapping rent payments.  As a business, this can significantly impact your bottom line.  Proper planning can alleviate the money wasted by paying rent on an unoccupied space.

Whether your company is looking to refresh its current space or considering a long-distance relocation, we would like to use our extensive expertise in project management and vast network of vendors to provide a comprehensive solution tailored to your organization’s unique needs.

When you trust Relofant with your corporate relocation needs, we oversee every last detail so you can focus on what matters most, your business.

Ready for a free personalized consultation?  Contact us today!

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