The idea of consolidating offices in one location is being reconsidered due to the establishment of remote work, disaster response, and the expansion of hiring areas. Rather than locating all functions at headquarters, more and more companies are using a combination of satellite offices, branch offices, and project locations.
What attracts attention at this time is the ``office office'', which inherits the interior, fixtures, and equipment of the previous tenant. While interior construction and furniture purchases can be reduced and operations can be started in a short period of time, if contract terms and equipment responsibilities are vague, unexpected costs will be incurred when moving out or when equipment malfunctions.
In this article, we will organize office distribution from the perspective of both BCP and cost reduction, and explain practical points to check before choosing a vacant office.
Reasons why office distribution is required
Office decentralization is the concept of dividing business functions into multiple locations rather than concentrating them in one headquarters location. It is not only concerned with infectious disease control, but also with natural disasters, traffic disruptions, power outages, communication failures, and recruitment strategies.
| Purpose | Effects obtained by dispersion | Points to note |
|---|---|---|
| BCP | Easy to continue operations even when one location is down | Business design between locations is required |
| Recruitment | Expand your commuting area | Set evaluation and attendance rules |
| Cost | The area of a large office in the city can be reduced | The management burden of a small office increases |
| Sales | Having a base close to the customer area | A person in charge of each base is required |
| Employee satisfaction | Reducing the burden of commuting | Information sharing system is necessary |
If you increase the number of offices without clearing the purpose of dispersion, office costs will simply increase. It is important to first decide what to disperse. The required area, equipment, and contract conditions will vary depending on whether it is just personnel, sales functions, a back office, or an alternative base in the event of a disaster.
What is a free office?
A vacant office is an office that can be moved in with a certain amount of the interior, conference room, reception, fixtures, air conditioning, lighting, communication wiring, etc. used by the previous tenant remaining. Compared to creating an interior from a skeleton state, this method is characterized by the fact that it is easier to reduce initial investment and construction time.
However, you should think of unoccupied properties not as a property that you can get into quickly and cheaply,'' but asa property in which your company undertakes the design of the previous tenant.'' If the layout doesn't match, there will be renovation costs, and if the equipment is old, there will be repair and replacement costs.
| Comparison items | Free office | Skeleton office |
|---|---|---|
| Initial cost | Easy to reduce | Can be expensive |
| Period until move-in | Short | Design and construction period required |
| Layout freedom | Influenced by previous tenant | Easy to design freely |
| Equipment status | Used equipment needs to be confirmed | Can be newly installed |
| Handling when moving out | Scope of restoration to original condition tends to be complicated | Easy to return according to contract terms |
Costs that can be reduced by living in an office
Things that can be easily reduced with a vacant office include interior construction costs, conference room fixtures, reception counters, fixtures, lighting, floor and wall finishes, and network wiring. If you have a small base, setting up these things from scratch can be a big initial cost.
On the other hand, it is dangerous to overestimate the amount of savings. If construction work such as removing some of the existing interior, changing the number of conference rooms, strengthening security, or increasing power capacity is required, the cost will be higher than expected.
Before moving in, it will be easier to make a decision by dividing the estimate into the following three parts.
| Cost classification | Contents | Judgment points |
|---|---|---|
| Costs that can be used as-is | Furniture, meeting rooms, lighting, flooring, etc. | Is it in a condition that can actually be used for business |
| Additional costs | Network, power supply, signage, security | Are these required before moving in, or can they be postponed? |
| Expenses that will occur in the future | Troubleshooting, removal, and restoration of original condition | Who will bear the cost of the contract |
Checklist to check before moving in
Failures in private offices occur due to lack of confirmation before signing a contract. Don't make a decision based only on the impression you see during the preview; check the facilities, contract, and exit conditions separately.
Facilities/Interior
- Air conditioner model number, year, maintenance history
- Lighting, power supply, distribution board, power capacity
- Relationship with conference room sound insulation, ventilation, and firefighting equipment
- Network wiring, server rack, Wi-Fi installation location
- Quantity and damage status of chairs, desks, and storage
- Management status of toilets, hot water supply, and common areas
Contract/Rights
- Who will own the leftover belongings?
- Either the landlord or the tenant is responsible for repairs in the event of a breakdown.
- Is there a fee for transferring the fixtures?
- Is a direct transfer agreement with the previous tenant necessary?
- Is there a designated construction contractor for the building?
- Is restoration to its original state a skeleton return or a return to a vacant state?
Operation/Security
- Whether or not the access control system can be changed
- Is there any wiring or terminal information left from the previous tenant?
- Is the area suitable for a department that handles personal or confidential information?
- Can the visitor flow line and office area be separated?
- Evacuation routes, stockpiles, and emergency power sources in the event of a disaster
Design when used as a BCP base
When using a vacant office for BCP purposes, you need to decide not only how easy it is to work on a regular basis, but also what work you will continue to do in an emergency.
For example, if your base is designed to maintain customer support in the event of a disaster, you will need redundant communication lines, storage for laptops, emergency power supplies, and an emergency contact network. If it is an alternative location for the back office, it will also involve storing paper documents and digitizing the accounting approval flow.
While the unoccupied office space can be used quickly, it still retains the design that was convenient for the previous tenant. It is realistic to check whether it matches the functions required for your company's BCP and add only the missing functions.
Don't take lightly the restoration to its original state when you move out.
In office contracts, the cost of restoring the property to its original condition when you move out is a major point of contention. Even if you move in empty-handed, you may be asked to return the building to its original form when you move out. On the other hand, if you have a contract that allows you to transfer the property to the next tenant without leaving the premises, you may be able to reduce the cost of moving out.
Before signing a contract, you should check the condition of the property at the time of moving in, what items are left behind that the landlord approves of, what features the tenant should remove, and whether or not they can be taken over by the next tenant. Attaching photos, a list of equipment, and a list of features at the time of move-out to the contract will reduce misunderstandings later.
I also want to read
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INA&Associates' philosophy
Offices are more than just fixed costs. It is the foundation that supports worker safety, information protection, customer service continuity, and corporate culture. An unoccupied office can be an effective way to quickly set up the foundation, but it only has value if the contract and operation are carefully designed.
We focus not only on reducing short-term relocation costs, but also on office strategies that support workers and businesses over the long term. It is important to choose the form of distribution that suits your company while looking at costs, BCP, recruitment, and security on the same table.
Frequently asked questions
Q. Is it possible to move to an office space cheaply?
Not necessarily. If the existing interior is suitable for your business, it will be cheaper, but if removal, additional work, or equipment replacement is required, it may be more expensive than a skeleton.
Q. Can I use the leftover ornaments freely?
It depends on the contract details. Please check the ownership of the remaining items, the responsibility for repair in the event of a breakdown, and the obligation to remove them. If you start using it vaguely, you are likely to run into trouble when you move out.
Q. What should I prioritize for BCP purposes?
Prioritize communication lines, power, security, and emergency staffing. Rather than looking at the appearance of the interior, check whether it has features that will allow you to continue operations in an emergency.
Q. Can I leave without leaving the room when I move out?
Depends on the landlord's approval and contract terms. In some cases, you may be allowed to transfer the property to the next tenant, but some contracts require a skeleton return, so please check before moving in.
