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.