Companies often cite five main reasons to change locations. These are labor and labor issues, the desire to reach new markets, the need to upgrade facilities or equipment, the desire to reduce costs or increase cash flow, and quality of life considerations. Expansion %26 Growth 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. Use this handy office space calculator to get a clear indication of how much office space you need. 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.
And as with most things in real estate, “location, location is key for everyone. General Electric, for example, moved its headquarters to Boston, Massachusetts, from Fairfield, Connecticut. As a 124-year company, keeping up with developments requires access to skilled labor and agile technology companies. The relocation made the objectives of the leaders possible.
Young and creative talents, such as Millennials, are drawn to the hustle and bustle of urban life. 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, for example, encourages businesses to move to the state with a credit that reduces business income tax. Similarly, Kentucky offers businesses a tax credit.
Louisiana, to facilitate relocations, offers businesses a rebate that offsets relocation costs by up to 25 percent. The environment and expectations of workers have changed permanently due to the COVID-19 pandemic. People who have adapted to the US DOT 2889377 IL C, C. Here are 6 reasons why you should consider relocating your business.
Moving from one place to another can reduce your tax burden. A move from one county to another can lower your sales taxes, while a move to a new state could eliminate inventory or personal income taxes. 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. Companies are moving for several valid reasons.
These reasons include cost reduction, office consolidation, expansion and growth, access to new markets and company reorganization. Reduce Costs 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. The increase in outsourcing allowed many companies to reduce the number of people on the payroll.
Expanding businesses may exceed the capacity of their existing facilities, leading to the need to move to a more up-to-date space. In particular, only 14.9% of companies move simply because their lease is maturing and only 2.5% of companies move in response to a drop in business. Almost all companies have a lease longer than one year, and most have leases longer than five years. That's why today, many companies are looking to relocate where they can access a quality workforce in sufficient numbers and with low labor costs.
Most companies report moderate to significant distractions, as well as a loss of productivity during the move. Reorganization or Better Facilities 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. . .
