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Office Relocation Costs

Moving offices is an exciting time, whether you’re a start-up or an established company. There is also a lot to plan to ensure a successful business move. From legal fees to office fit-out costs, you’ll have to create a realistic office move budget.

Hiring an office relocation company will make up a big part of the costs, but is a service that is recommended for minimal business disruption. In this guide, we explore the office relocation costs you must consider for your office move.

How Much Does an Office Move Cost?

Once you’ve found a new office location, you’ll have to create a budget to include upfront and extra costs. The cost of your office move will depend on a few factors:

Commercial mortgage

Varies

Termination fees

Varies

Dilapidations

Varies

Building survey fees

£800

Solicitors fees

0.5% to 1.25%

Refurbishment & fit-out costs

Varies

Business storage costs

£27 per sq. ft

Office relocation company

£5,250-£14,550

Office Relocation Company

Anoffice relocation company will cost £5,250 for a medium move and £14,550 for a larger business move on average. Each move will vary but your final quote will mainly depend on:

1

The size of the office

2

The distance of the move

3

The number of items being moved

4

Any extra services such as packing and storage

You’ll want to use the moving company’s packing service to guarantee the best results. Professional movers and packers will carry this out to ensure your office equipment is protected throughout the move.

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Commercial Mortgage

If you’re buying instead of renting, you’ll likely need to take out a commercial mortgage. There are a few different business mortgage types, but for buying an office you’ll need an Owner Occupied commercial mortgage.

The rates and terms are tailored to you instead of being fixed so you’ll have to shop around to get some figures. You’ll also have to factor in these extra costs when taking out a commercial mortgage:

1

Arrangement Fee

It’ll cost between 0.75% to 2.5% of the loan amount to take out a commercial mortgage.

2

Valuation Fee

This will cost more than residential property valuations as commercial buildings are more complex.

3

Legal Fee

These are also often more expensive than residential mortgage legal fees and you typically have to pay for the lender’s legal fees as well.

Termination Fees

If you’re leaving your lease early, you may be subject to termination fees. Early termination fees are an expense that can be avoided if you plan your commercial move wisely. Find out from your landlord the earliest you can leave without paying early exit fees.

Dilapidations

If you’ve been renting your office space, your landlord will serve you with a ‘schedule of dilapidations’. Dilapidations are costs to put the office back to its original state pre-let. This will include reinstating any cosmetic alterations or repairing anything that’s broken.

Although they can make this claim at any time, it’s usually done at the end of your lease. There is no set cost and will depend on what your landlord serves you. You can either agree, negotiate or dispute the dilapidation claim.

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Building Survey

When you’re moving offices, you’ll need a Level 3 Building Survey carried out on your new building premises. This type of survey on a residential property averages at £800. This will likely cost more for a commercial building based on the value and type of the office.

A chartered surveyor will inspect the office space and create a detailed report of their findings. It’ll assess the condition of a building and highlight any defects as well as advise if any future maintenance will be needed.

Solicitor Fees

Solicitor's legal fees for buying a commercial building are generally between 0.5% to 1.25% of the value of the transaction. If you’re setting up a new lease, it’s advised to also hire a solicitor for legal advice about the lease.

You should also factor in that tenants often have to foot the bill for some or all of the landlord’s legal fees.

Refurbishment & Fit-out Costs

If your new office space is unfurnished, you’ll need to factor in the cost of buying office equipment such as desks, tables and chairs. To save money, you should visit the office and create a floor plan so you know the quantity of everything you need.

You must have the right office layout to suit your business needs. This might mean changing the new office design and layout which you’ll need to factor into your refurbishment costs.

You’ll also need to factor in setting up your current or new IT systems. This should be a priority after the removal company has unpacked to minimise business disruption.

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Business Storage Costs

Business storage costs £27.19 per square foot for a storage unit in the UK. Using storage during an office move means minimum disruption to your business if you need to vacate your old office space before you can move into your new office building.

You can use either self or container storage, depending on your business stock requirements. Compare business storage quotes to get the best price for your storage unit.

Other Costs to Consider

Below we highlight extra business relocation costs you might not have factored into your budget:

1

Parking Fees

Find out if your new office has parking spaces included in the price. If not, you’ll have to factor in annual parking fees for your staff in your total office relocation costs.

2

Contents Insurance

Business contents insurance is a must when moving offices. Find out if you can transfer your current policy, but you may have to pay extra depending on the office size and type.

3

Broadband

You should check if broadband is included in your contract. If not, you’ll have to get this set up in your new office. You can either move across your current deal or search for better deals.

4

Cleaning Service

Hiring a cleaner to ensure the office is left in good condition will help to ensure you don’t get charged any extra fees.

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Find an Office Relocation Company

There are a few factors to look for during your search for a company that offers office relocation services:

1

Insurances

Only use a company that has Goods in Transit and Public Liability insurance in place.

2

Extra services

Make sure the company provides additional removal services such as packing and business storage solutions.

3

Reviews

It’s important to check the company’s reviews before you use them to get an idea of the level of service they offer.

4

Experience

Check they have the relevant experience of moving a business of your type and size.

Compare office removal companies with Compare My Move to get connected with up to 6 local firms. Save up to 70% on the cost of moving offices by comparing quotes.

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Written by

Last updated

10th May, 2024

Read time

6 minutes

Martha Lott

Written by

Senior Digital Content Executive

Having guest authored for many property websites, Martha now researches and writes articles for everything moving house related, from remortgages to conveyancing costs.

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