For many businesses with upcoming relocation aspirations the social distancing measures implemented at the start of March as a result of Covid-19 were an immediate concern. An effective relocation project relies upon multiple tours by senior decision makers along with site inspections from consultants tasked with the delivery and negotiation of a lease, as well as an internal fit-out plan.

The simple solution would be to renew your current lease or agree a short-term extension. However, there are many circumstances where this might not be possible, such as your landlord’s development objectives, their lack of flexibility, or the office is simply no longer suitable for your business. Needless to say, if a company does want to relocate, these projects are still very achievable in the current climate.

After taking a detailed brief, often the first stage of any relocation involves site inspections. In recent years, landlords have increased their properties’ web-exposure and viewing technologies with many buildings now providing web-hosted virtual reality tours. Additionally, when being advised by an agent the likelihood is that they have already visited the premises, so can provide a first-hand account of the space.

While there’s no substitute for physically inspecting options, you could feasibly create a shortlist remotely before undertaking further due diligence, finally viewing the property once it is safe to do so. 

This further due diligence could include designing high level fit-out plans, requesting initial proposals and cash flowing these against alternative options. Again, while it’s unadvisable to instruct solicitors prior to an inspection, agents can advise on the clauses within the Heads of Terms which can be sent to your solicitor upon going under offer at a chosen location.  

For those occupiers who have lease events in 2020, the prospect of relocation may be daunting and, with current pressures on fit-outs, might prove a decision too risky for some. It would, however, be worth reviewing your lease to see if you have protection under the security of tenure and compensation provisions of the 1954 Landlord & Tenant Act. If you do, bar a few exceptions, you will be entitled to hold over in your premises while negotiating a lease extension. If this is the case, we suggest seeking advice from your solicitor.

Those with lease events in 2021 may still have concerns around the project length for internal fit-outs and consequently we are seeing landlords agreeing early access for assumed longer fit-out periods and elongated project programmes.

Finally, this time could be used most effectively to review how your office works for your business. For the first time in modern history most people are working productively from home. While we all miss the social interactions an office brings, some companies may wish to consider their home working policies and consequently their space requirements. Others may want to consider diversifying their portfolio with multiple de-centralised office locations to minimise business risk for when the workplace is up and running again. Some occupiers may even want larger offices to maximise social distancing where possible.

Ultimately we are yet to establish a new normal, but there is plenty we can be doing in the meantime.

Further information

Read more: Market in Minutes: Greater London & South East Offices