Moving Your Business to a New Location: A Step-by-Step Guide

The 2020s have been a game-changer for corporate real estate. Many companies have decided to expand or downsize their offices. A recent report by Hire a Helper found that 9%¹ of companies moved their offices in 2023. Moving your business to a new location can be relatively stress-free if planned correctly.

This article will walk you through some of the most important things to consider if you plan on moving your business to a new location.

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Key Steps in Moving Your Business to a New Location

Moving to a new office is often necessary for many small businesses. When your company makes this leap, it is important to consider the financial costs and logistics. Whether that is out of necessity or preference, below is a list of key points to consider to make your move as smooth as possible.

Assessing the Need for Relocation

The main drivers for businesses choosing to relocate are growth and cost concerns. Expanding companies need to find a larger office space. Companies shifting to a hybrid or remote model may only need a smaller office.

Your office space is a key part of your company’s finances. This decision can also influence employee performance and customer relations. In many cases, you may determine that a move is necessary if it benefits your employees and/or customers. Companies will also need to ensure that management, board members, and other stakeholders are in favor of this move.

Choosing the Right Location

Another common trend has been companies choosing to move their offices to different states. In some cases, it is because² of favorable tax rates and other benefits. Companies may also prefer new locations because of the demographics and the regional markets.

If you are moving your business to a new location, it is important to take a close look at the demographics of the area and strongly analyze your customer base. If you need to hire employees from the area, it is important to ensure that the labor market of the area is strong and matches your needs. If you are targeting new markets, it may also be necessary to research the area and perform a market analysis.

Logistical and Legal Considerations

Finding the right lease agreement is another important step. The average lease length for companies is around 87³ months, so it's crucial to make sure your move is the right business decision.

There are many types of zoning codes⁴ to keep in mind to ensure your office location is appropriate. Any change in these laws can also impact property valuations, potentially making your lease more expensive when you extend it.

The permits that you need vary⁵ depending on your industry. Many companies will need to check in with various federal agencies to determine that their operations are legal. They should also obtain the necessary permits.

Finally, another very important consideration is parking, especially if you have a lot of customers. It is also important to ensure that the parking changes don’t cause any headaches for existing or new employees.

All of these needs are very important to consider. It is also important to plan how they may change over the course of several years.

Minimizing Downtime During the Move

If you are moving your business to a new location, it is important to ensure this move doesn’t cause any unexpected delays for your employees and customers. If possible, it is best to plan the move for the weekend and to avoid doing it during peak business times. You can also consider moving in phases, allowing each department to transition slowly to the new office.

Notifying Stakeholders About the Move

Once you have a solid plan in place, it is important to clearly communicate this information to your key stakeholders. Establishing clear communication can make moving your business to a new location much easier.

Companies can put up signs in their existing office and send reminders. They can also prepare email marketing lists, and use other methods to communicate these changes to their customers.

Employees may also need to make changes in response to the company moving its office. Companies should provide employees with as much notice as possible and ensure the move does not cause any major disruptions.

It is also important to update legal documents, marketing materials, and other documents to reflect these changes in the future. You may need to order new business cards or other materials for people in the office.

If you are planning to send announcements to customers, you can use this as another time to remind customers about the change. It may be necessary to send multiple reminders to your customers and employees.

Top Reasons for Business Relocation

There are many reasons why a company may decide that a move is in its best interest. 60%⁶ of businesses cited costs as the number one reason for moving. Whether it's upgrading your space or downsizing, moving to a new office space can be a smart financial decision if planned properly.

As companies grow, they will need to expand to serve their customers and offer enough office space for new employees. Companies may also consider geographical moves to serve new markets, whether they are expanding or pivoting to target new regions. While cutting costs is very important, many businesses may also be more focused on seeking new sources of financial growth. They may also look to offer better facilities for their employees.

How Do You Successfully Move a Business?

Moving your business to a new location can be easy once you have completed all of the financial and legal legwork.

Performing market and financial research can help your company make the right decision. It is crucial for companies to plan carefully and perform necessary research to analyze the financial costs and benefits of relocating. Once the decision is clear, the next step is to clearly and quickly communicate all of this information to customers and employees. All of these steps require careful planning and could take over a year to implement.

What Are the Biggest Challenges When Relocating a Business?

Below are some of the main challenges you may face when moving your business to a new location.

Office space location: Businesses need to consider the costs, employee preferences, and distance from customers. It can sometimes take companies up to eight months⁷ to find the right office space at an affordable cost.

Notifying customers: If you operate a retail store or another business where customers regularly visit your office, it is important to notify them in advance. Any last-minute changes could disturb your revenue in the short term.

Communication and planning: Businesses also need to communicate key information to other stakeholders, such as employees, board members, and other individuals. This process needs to be carefully planned to ensure that everything goes smoothly.

Lack of alignment on the decision: In some cases, businesses may have a hard time agreeing on the move, especially if it is related to a company’s strategy or expansion. Management may not fully align, and employees may also be uneasy about the move if it is not planned correctly.

Rising costs: Construction prices have been rising⁸ substantially, so companies should be ready to pull the plug when they begin financially planning the move. Sharp price increases may lead commercial real estate operators to increase lease rates.

Moving equipment: Businesses with IT equipment or other heavy physical equipment will need a lot of time to move all of this equipment.

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6. why-businesses-decide-to-relocate
7. when-should-i-start-looking-for-office-space/
8. construction-materials-costs-rise-third-month-tariff-pressures