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New office? Avoid one-sided price focus
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It's not only the rent that makes a move to a new office a succes. The consequences of choosing the wrong place at the - in theory - right price can have enormous consequences for productivity and recruitment potential.

In our experience, both in the short and long run it pays to look at all property- and location-related factors rather than have one-sided focus on direct overheads such as rent and operating costs.

Failure to do so may severely impair productivity and incur higher costs relating to recruitment, etc.

A traditional procurement policy focuses on rent and operating costs in particular; as a result, the company could well end up putting too much emphasis on direct costs alone.

If you base your localisation decision solely on customary key figures such as costs per sqm or per workstation, you may therefore potentially fail to factor in substantial indirect costs.

In order to identify the latter, it is important to launch several initiatives in connection with a relocation project:

  1. An organisational analyses to pinpoint both space-utilisation and work/teamwork flows on department level. The analysis gives an idea of what is required of the building design, the office premises themselves and the services in and around the building. These factors may greatly impact on staff productivity and, by extension, on the cost level itself. 
  2. In addition, the location may greatly impact on the company’s ability to retain and recruit employees. As part of the search for new premises, an identification of needs and requirements must include geographical analyses of staff settlement patterns as well as an inquiry into future recruitment grounds.
  3. Image and quality may be crucial to the company’s ability to retain and attract employees. Interior layout and building design must be aligned with corporate values and culture.

Professional tenant representation therefore involves not only a thorough market search for suitable premises, but is based on a full-circle analysis of all the factors that are affected by the choice of final lease premises. This way, the advisory services pinpoint central elements of risk, motivation and consequences of the decisions made.

Our network partner, JLL, has written an interesting report on the subject.

Read more about Sadolin & Albæk's Corporate Solutions helping companies find new or upgrade current premises.