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Refurbishment or Relocation: Making the right choice

Home Insights Refurbishment or Relocation: Making the right choice

When businesses outgrow their current spaces or find their offices no longer align with their vision, they face a pivotal decision: should they stay or should they go?

Why stay?

Lack of available Grade A space

With the overall vacancy rate in Central London decreasing to 9.4% and the Grade A vacancy rate at just 5.4%, high quality, modern office spaces are in increasingly short supply. These figures highlight a "flight to quality," as businesses prioritise premium workplaces to attract employees back to the office. The growing demand has intensified competition for Grade A spaces, in some cases driving record high rents. As a result, many companies are opting to refurbish their existing offices, upgrading them to meet evolving employee expectations and business needs.

Choosing refurbishment

Refurbishment is an excellent option for businesses that value continuity, sustainability and cost control. It’s particularly suited to organisations with strong ties to their current location, a stable workforce or a desire to enhance their space without the upheaval of a move.

The benefits of refurbishment

Retention and morale

A well designed and refreshed workspace can significantly boost employee morale and job satisfaction. Employees become accustomed to their commute and nearby amenities, making a move disruptive both personally and professionally. For some employees relocating to a new office can lead to longer commutes, unfamiliar surroundings and the loss of convenient facilities, all of which may impact job satisfaction and retention. By refurbishing rather than relocating, businesses can improve their workspace while maintaining the stability and routine that employees value.

Landlord concessions

For tenants, refurbishing an office space may open the door to negotiations with landlords for financial incentives. Many landlords are willing to offer rent free periods, financial contributions or lease extensions in exchange for tenant led improvements. These concessions can help offset refurbishment costs and make it a more financially viable option compared to relocation.

Optimising and expanding space

A refurbishment provides the opportunity to optimise the existing layout, making better use of available square footage. Landlords may have vacant space in the same building, offering opportunities to expand into additional floorplates or connect floors with internal staircases (see what statement staircases Overbury have previously installed here). This enables businesses to scale up without relocating, minimising disruption while creating a more efficient and cohesive workspace.

Connecting floors at Julius Bar

Customisation

Refurbishment allows businesses to tailor their office environment to their specific needs and brand identity. From choosing bespoke finishes and ergonomic furniture to implementing smart technology and flexible workstations, a customised approach ensures the workspace reflects the company’s culture and operational requirements. This level of personalisation can enhance employee engagement and create a more functional and aesthetically pleasing work environment.

Minimal disruption to operations

With proper planning, renovations can be phased to minimise interruptions, ensuring that productivity and client services continue uninterrupted. Businesses can implement a staged approach, refurbishing one section at a time, allowing employees to continue their work with minimal disruption. Additionally, scheduling work during off peak hours or weekends can further reduce operational disturbances.

Sustainability

Refurbishing your current office space is a more environmentally friendly option. It reduces waste associated with moving or demolition and often incorporates sustainable materials and energy efficient upgrades. Many refurbishment projects align with leading sustainability certifications such as BREEAM, LEED, SKA and NABERS, ensuring high standards of energy efficiency, resource management and occupant wellbeing. This approach aligns with corporate social responsibility goals and can help reduce operational costs over time.

Maintaining community and customer ties

Staying in your current location preserves your connection to the local community, your existing customer base and established networks. This is especially important for businesses that rely on their location for regional identity or strong relationships with nearby partners. By refurbishing rather than relocating, businesses can maintain continuity, uphold their brand presence and continue building local relationships without disruption.

Reed Smith’s office in a converted timber warehouse.

Why go?

Choosing relocation

Relocation involves moving your business operations to a completely new office space. It’s a significant decision that offers opportunities for growth, improvement and alignment with your company’s long term vision.

What are the benefits of relocation?

Access to new talent

Moving to a different location can open the door to a larger and more diverse talent pool. If your current area has limited hiring opportunities, relocating to a business hub or a region known for a specific industry can help attract skilled professionals. Proximity to universities, transport links and emerging business districts can make recruitment easier, enhancing your ability to secure top talent.

Access to new opportunities

Relocation can provide access to a broader client base, improved infrastructure and better business prospects. Moving to a high profile business district can boost brand visibility and open networking opportunities with major industry players. For companies looking to expand or enter new markets, relocation can be a strategic move that strengthens their competitive edge by positioning them closer to key suppliers, investors or potential partners.

GSK relocates to their brand new Central London location

Scalability

As businesses grow, their office space must adapt to evolving needs. Relocation allows companies to choose a space that not only accommodates their current workforce but also provides flexibility for future expansion. A larger office with adaptable layouts, breakout areas and room for additional staff ensures the business can scale without frequent, costly moves.

Improved amenities

Newer office spaces often come equipped with advanced facilities, including modern technology, high speed connectivity, enhanced security and energy efficient systems. Features such as smart lighting, climate control and advanced meeting spaces contribute to a more comfortable and productive work environment. These upgrades not only enhance employee satisfaction but can also lead to cost savings through increased efficiency and reduced energy consumption.

GSK relocates to their brand new Central London location

Relocation or refurbishment FAQ's

  • The cost effectiveness depends on the specifics of your situation. Refurbishment is generally less expensive upfront. Relocation often involves higher initial costs, but it can position your business for future growth and operational efficiency. A detailed cost-benefit analysis is essential to understand the financial implications of both options.

  • Refurbishment usually has a shorter timeline, as there are generally fewer logistical complexities. Relocation requires more extensive planning, including lease negotiations, moving logistics and setting up the new space. Your decision should align with your business’s time constraints and operational needs.

  • Factors such as commute impact, workplace flexibility and local and workplace amenities, play a major role in employee retention and satisfaction. Both refurbishment and relocation should be approached with a deep understanding of how the new space will enhance work culture and engagement.

  • A phased approach, strategic temporary relocations (e.g. swing space), and off hours construction scheduling can minimise operational disruptions. Engaging employees early in the process and providing clear communication on timelines, noise management and workspace adjustments is critical to maintaining productivity.

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