Re-Evaluating Your Commercial Office Space?

The American workplace recently received an unrecognizable facelift. Some attribute the new look to The Great Resignation. Others claim it's due to health and safety concerns of returning to the office. Yet, at least one survey suggests that 70% of employees working from home want to return to the workplace as COVID-19 restrictions ease. Regardless of the exact reasoning, the workplace shuffle is forcing business owners to re-evaluate their facility needs.

Some businesses will downsize or expand their commercial office space to accommodate new work schedules that support an in-person, hybrid, or fully remote workforce. Here are four things to consider before you start collecting bids from local moving companies.

1. Space Usage

If you expect an increase in current employees returning to the office while you onboard new workers to support your expanding business, start by exploring ways to maximize your existing space. Replace bulky furniture with streamlined versions, create shared office space, and dispose of outdated equipment you rarely use, e.g., fax machines or oversized printers. These modifications could help delay the need to move right away. However, if your business continues to flourish, there will likely come a time when you need more space to support growth.

2. Strategic Plans

Whether you have a detailed 10-year strategic plan or a simplified 3-year business plan, knowing what's on the horizon could help determine whether a facility relocation or renovation makes sense for your situation. What is the expected headcount over the next 24 months? Are there new products you plan to introduce to the market? Upsizing office space now could allow you to stay ahead of expected growth. Review your business forecast aside short-term and long-term business objectives before deciding to move or stay at your facility.

3. Customer Needs

Depending on the products or services you sell, customers may visit your business to complete a transaction, return a product, or speak with a salesperson. If your company relies heavily on foot traffic, a relocation might not be an ideal move. For most businesses, the more potential customers who enter the facility, the higher the sales revenue. Moving to a smaller space could create an unwelcoming environment for new and current customers, which could negatively affect your bottom line. But, if customer demand has outpaced your ability to serve existing and new customers, consider how a facility change could benefit the business.

4. Hybrid or Remote Support

Switching from an entirely in-person workforce to one with varied schedules takes careful planning. You may need the expected cost savings you receive from downsizing to pay for systems that support a hybrid or remote team. For example, employees often need mobile devices, laptops, and remote wireless connections to communicate effectively. You'll also need a safe and secure means for them to protect company data, such as cloud based-systems and a virtual private network (VPN). Ensure you include such items in financial projections when evaluating the cost-benefit of expanding or downsizing office space.

We Have Solutions for Your Office Space

Avoid paying more than necessary for commercial real estate by making a move that fits your new reality. Contact Town and Country Bank and Peoples Prosperity Bank today at 866.770.3100 to request a free consultation with a member of our Commercial Banking team. We’re here to discuss how our commercial real estate loans and other financing options could help fund the acquisition of the right-sized property, a facility renovation, or new construction for your business.