We are frequently involved in conversations about renovating existing space, and during these discussions it is common for people to compare the pros-and-cons of renovation versus relocation.
While a thorough analysis of both options is necessary, there are usually a greater number of important questions to be answered with respect to relocation, which might include:
- Are team members willing to relocate?
- If so, what costs might be associated?
- Is there a sensitive or critical time-frame associated with a move?
- Could the business experience potential downtime?
- Are there any relevant or troublesome zoning and land-use issues?
Business leaders are often surprised to discover that the biggest costs often relate to people. The cost of relocating workers and families, especially homeowners, is often significantly higher than anticipated. The cost (and risk) of rehiring when some team members opt not to move is often more costly than expected as well.
Engaging an experienced real estate agent as well as a builder is often beneficial to the company in evaluating a potential new site. Whether it is a parcel of land or an existing facility that is being considered as a new business location, management will need advisors to determine the cost of building and/or renovating to suit current and anticipated needs.
After determining answers to the questions listed above and incorporating the input of external resources, business leaders will be better able to make the “renovation or relocation” decision.