Downsizing Your Office In 2023? What You Need To Consider

Keeping a company office can bring many benefits to your organisation, including helping you to create a supportive internal culture.

However, office spaces cost thousands of pounds to rent and run, even small ones, and these costs are rising as energy costs and inflation keep going up.  

As such, it’s understandable that the UK is bracing itself for a 20% reduction in used office space. Companies are seeking ways to reduce costs and adapt to new ways of working, such as hybrid or fully-remote work for some employees. 

As such, many business leaders might think that they need to reduce their office space. If you’re one of them, this might seem like a daunting task.  

That’s because downsizing your office is a significant decision which can bring about both tangible and intangible changes to your organisation, including reducing the room you have for new technology, limiting the future scalability of your company and more.  

So, if you’re planning on relocating your business to a smaller office space in 2023, then here’s a checklist of the main factors you need to consider.  

Work Out How Much Space You Need 

Before you look into moving to a new office, you need to understand how much of your current office space is being utilised. This includes determining how many employees use the office, how often, and what areas of the office are most used. Once you have this information, you’ll be able to determine the scale of downsizing necessary. If employees are still going to be working in the office part or full-time, their needs should be considered. This includes workspace needs, meeting rooms, break areas, and other facilities. Additionally, consider the personal and emotional effects of downsizing. Engage your team in the decision-making process and communicate changes clearly and empathetically so that you make an informed decision about how much space you need.  

Set A Budget 

Downsizing your office space will save your business money in the long run, but in the shorter term it’ll require investment to rent a new space and move your office equipment to your new location. Therefore, it’s important that you think about the financial implications of the move and set a budget for the move. Start by comparing the cost of your current office to that of a smaller one, as well as factoring in any costs associated with breaking a lease, moving, and re-establishing in a new location. You should also get some quotes from service providers that you need to work with, such as removal companies or office refurbishment providers, to help you get your new office designed to meet the needs of your business. Experts like the team at Amos Beech can offer you a competitive quote, so you know how much your new office will cost to customise. Once you know these costs, you can make informed choices about whether this office space is cost-effective and a good fit for your business. 

Understand Your Legal Obligations 

Like moving home, relocating to a new office has some legal obligations involved. The main one is the lease arrangement on your current workspace, so you need to make sure that you check this and understand your obligations. Key points to focus on are the duration of the lease, early termination clauses, and any penalties for breaking the lease prematurely. Also, your lease may require you to restore the property to its original state before you leave. This could include removing any alterations or improvements you’ve made, such as partition walls or custom wiring, and repairing any damages. Additionally, you need to check the notice period required to terminate the lease. Ensure you’re providing adequate notice to avoid any legal issues or additional costs. If you cannot terminate the lease early without substantial penalties, another option might be to sublease your office space or assign the lease to another tenant. Be sure to check if your lease allows for this and understand the associated legal obligations. If you’re unsure about your obligations, then speak to a property law expert to get tailored advice that is clear and easy to implement.  

Consider Scalability And Your Future Prospects 

While you are downsizing now to save money, it’s important that you consider your plans for future growth. The new space should be flexible enough to accommodate potential expansion, or there should be a plan in place for such a scenario, so that you’re prepared for any eventuality. If you’re thinking that your business might need to expand going forward, then you might want to consider finding an office space that’s scalable. This could be a flexible lease in a business park that allows you to add more space when needed or a co-working space where you can rent more desks or offices as your team grows. Serviced offices often allow for such flexibility so that you can adapt if you need to. Learn about a variety of flexible office space options so that you can ensure that your new office will benefit your business both now and in the future.  

Fundamentally, moving to a smaller office space is a strategic decision that can impact many aspects of a business. It’s essential to approach it with careful planning and consideration of the factors mentioned in this article so that you can make the most of your new workspace.