Should I stay or should I go? Considerations for moving premises

That means it is more important than ever to bear in mind certain fundamentals that an experienced and suitably qualified surveyor can advise on.

Whenever the time approaches to renew a commercial property lease, it is important to take a long hard look at both the current requirements of the business today and its likely future needs.

This applies just as much in boom times as its does in the current challenging climate.

David Potter FRICS, RICS East operations director, said: “Whatever the scenario, it is important to remember that every case is different and it is essential to seek professional advice before making commitments to move. As in most walks of life, knee jerk reactions are rarely the best and the key to the right decision lies in a careful, considered approach.

“In many ways, the commercial property market favours tenants. If the existing premises fit the needs of the business for the anticipated term of any new or extended lease, then tenants should find themselves in a fairly strong position to re-negotiate terms.

“Areas for discussion will include not just the rental but also refurbishments and upgrades to common parts and services. Landlords may see some contribution towards the above as a fair return for the security of another five or 10 year lease.

“Engage constructively with your landlord – he would much rather discuss the issues facing both parties together and may well be keen to be accommodating!

“Where staff numbers or space requirements have changed, it will be important to think about whether such adjustments are short, medium or long term.

“Moving premises is a costly business so whilst a smaller or larger premises may look attractive at first glance, any savings have to be balanced against not just re-location expenditure but also expectations of future growth. Where downsizing, the short term rental saving on smaller premises may well be offset by the cost of the move – and then moving again in the near term to accommodate growth as the economy improves.

“When calculating moving costs, it is prudent to think widely. There may be a need for building modifications, new IT systems, furnishings and, of course, an office move also means such things as re-printing business stationery.

“Try to think about where your business is now and where it expects to be in three to five years and fully consider all of the costs of a potential move. If you look at these in detail you should be close to arriving at a view on whether it is better to stay and re-negotiate the lease or look for new premises. Then, whether you are moving or staying, seek the advice of a professional surveyor so you get the best deal either way.”