Relocating Can Be More Expensive Than You Think

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By Brian Buschuk
Jones Lang LaSalle

Many tenants look at relocating as a way to cut costs once their lease is set to expire. At the end of the day, though, it could cost them more than renewing — even with a small rent increase.

Individually, the expenses are not huge, but they can add up quickly. A few hidden costs to consider:

  • New business cards, stationary, signage and mailers/advertisements letting your clients know that you have relocated
  • Typically, a move across town will require a different service provider for phone and data, which could also result in significant start-up costs
  • Tearing down and relocating warehouse racking
  • Moving interrupts day-to-day operations for employees, even if professional movers are hired

In other words, it’s important to consider all the angles when looking at relocating. The 10-cents-per-square-foot increase on your renewal might not be as bad as you think when you look at the big picture.

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