Companies often move locations for a variety of reasons, from labor and labor issues to the need to upgrade facilities or equipment. Expansion and growth, cost reduction, office consolidation, access to new markets, and company reorganization are all common reasons for relocating. Moving can also bring a variety of benefits, such as reduced taxes, access to skilled labor and agile technology companies, and the ability to stay current with market demands. The main reason a company decides to move is because its current facility no longer has enough space to meet its requirements.
Any future consideration of office space should take into account sufficient space for growth and expansion of the company. This will ensure you don't run out of space before the lease expires. In this survey, we found that the most common reason companies move offices is because of their growth. Businesses that move for “growth reasons” versus “no growth” tend to worry relatively less about price and more about the amenities and flexibility of leasing. Location is also key for everyone.
General Electric, for example, moved its headquarters to Boston, Massachusetts, from Fairfield, Connecticut. Cities that stay up from 18 to 24 hours a day are dotted with high-end dining options, luxury apartments, numerous entertainment venues and the convenience of public transport. Indiana, Kentucky, and Louisiana all offer businesses tax credits or rebates to encourage relocations. The environment and expectations of workers have changed permanently due to the COVID-19 pandemic. Moving from one place to another can reduce your tax burden.
Estimate your licensing, permit, fee and tax costs based on your current location and other locations you're considering to determine if that difference justifies a move. The need to reduce operating costs is also a common reason why many companies have to move. Companies actively seeking to re-establish their brands through relocation efforts show customers and business partners that they are interested in staying current and that they are able to meet current market demands. Expanding businesses may exceed the capacity of their existing facilities, leading to the need to move to a more up-to-date space. Companies often find that their current office facilities are too outdated to carry out their tasks efficiently, or want to give their company a new image by moving to more modernized facilities. Most companies report moderate to significant distractions, as well as a loss of productivity during the move. However, relocating can bring a variety of benefits such as reduced taxes, access to skilled labor and agile technology companies, and the ability to stay current with market demands.
