Budgeting and Commercial Relocation Project Management
Relocating a business is typically an exciting step toward growth, efficiency, or better opportunities. However, many companies underestimate the true cost of moving, leading to budget overruns and unexpected expenses. Beyond the obvious costs—such as hiring a commercial movers and leasing a new space—there are several hidden costs that can disrupt your financial planning. Unless you’re working with a commercial relocation project management company, these unexpected costs have a way of running away on you. Let’s go over some of the overlooked expenses to consider when budgeting for a commercial move and how working with a commercial relocation project management company can help mitigate financial risk
Downtime and Productivity Loss
So, let’s start with the obvious- moving downtime. Even the most well-planned relocations involve some level of disruption, and that’s totally fine. Your employees may need time to pack, adjust to the new space, and set up equipment. IT systems might be offline for a period, and normal operations could slow down. However, lost productivity can translate into overall revenue loss, so it’s crucial to plan ahead so things are as organized as possible to reduce the amount of downtime actually incurred during a relocation.
As a commercial relocation project management company, we’ve worked in dozens of different industries and have executed all kinds of different commercial relocations swiftly and on budget. We’ll let you in on a little secret: planning is half the battle. Don’t just start packing your boxes and expect things will fall into place. A detailed commercial moving plan is the first step in a successful and cost-effective relocation.
The Bread and Butter of a Detailed Moving Plan: Create a comprehensive timeline outlining key tasks and deadlines. Assign responsibilities to internal teams and external vendors to ensure accountability. Conduct risk assessments to identify potential disruptions and develop contingency plans.
Communication Fallouts
Effective communication is the backbone of any smooth relocation. Keeping everyone in the loop reduces confusion and helps build confidence. A solid communication plan ensures that key information reaches the right people at the right time, and it helps address concerns before they become bigger problems.
Here’s what your communication plan should include:
- Regular updates for staff and stakeholders
- Clear channels for questions and concerns
- Briefings or newsletters to keep everyone informed
- Include detailed packing guidelines and schedules
- Conduct regular status updates via email, meetings, or a move-specific communication channel
- Offer training or orientations on new office layouts, technology, or procedures before the move
Consider setting up a dedicated internal team to share updates and provide a central place for all relevant information.
IT and Infrastructure Setup
Setting up internet, phone lines, and IT infrastructure in the new location isn’t just a matter of plugging things in. Many companies need new networking equipment, additional cabling, or upgraded security systems. If your business relies heavily on technology, factor in the costs of hiring IT professionals to ensure a smooth transition.
One of the best parts of working with an experienced commercial relocation project management team is our network of trusted vendors. No waiting on the phone to be connected with a rep to schedule a service time and praying someone actually shows up. We have the relationships already in place to ensure your IT infrastructure is up and running as soon as the keys are in your hands.
In order to mitigate downtime and lost productivity, our commercial relocation project managers take extra steps, some of which are:
- Pre-installing internet, phone systems, and IT infrastructure at the new location before employees arrive
- Working 1:1 with IT specialists on your behalf to ensure a seamless data migration and prevent system downtime
- Creating a backup plan for critical business applications in case of unexpected technical issues
Lease or Permit-Related Costs
This one’s a doozy. Unfortunately, exiting your current lease may come with unforeseen fees. Many commercial leases require businesses to restore the space to its original condition, which can mean repainting walls, removing fixtures, or repairing any damage. Additionally, if your lease doesn’t expire at the time of your move, you may need to pay an early termination fee or cover rent for the remaining months.
Additionally, depending on your industry and location, your new space may require permits or modifications to meet safety codes, zoning laws, or industry regulations. This could include accessibility upgrades, fire safety improvements, or specific renovations to meet business needs. Ensuring compliance from the start can help you avoid costly fines or last-minute expenses.
Luckily, we’ve seen it all here at Pivotal. Things rarely shock us anymore because we’ve truly been through hundreds of moves and dealt with thousands of moving pieces. We know what to look out for and how to handle these issues if they arise. Commercial relocation project management companies are a bit like consultants in that way.
Schedule Delays
It is only natural that if one thing falls out of place, it has a domino effect on the entire relocation plan. This can cause unforeseen 3rd party scheduling conflicts, staffing concerns, and of course, negative budget implications. Thankfully, planning for delays and working the “what-ifs” into your commercial moving plan can drastically reduce this risk.
Tip from the pros: One really effective way to reduce downtime during a commercial relocation is to plan the move outside business hours (e.g., evenings, weekends, or holidays) to reduce disruptions. This means organizing a phased move where teams relocate in stages instead of all at once. Many times, we’ve used a temporary workspace or remote work solutions to maintain operations during the transition.
This strategy is especially effective for large commercial moves where individuals may be able to work from home or off-site for a short period of time and allow the commercial relocation project management team to execute the tough stuff. Then, your staff will essentially just arrive at their new desk at their new office without disruption.
Commercial Relocations – Mastering Your Budget
The bottom line is that, if you want it done right, hire a team with the experience to make it happen. Working with professional commercial movers comes with the perks of having a moving company, a strategic director, a contractor, and an assistant all rolled into one.
At Pivotal Project Management, we specialize in secure, compliant, and budget-conscious moves, ensuring that your company is protected throughout the relocation. We manage every aspect of your move with an unwavering attention to detail and minimize downtime with our prompt and precise approach. Whether you’re relocating locally or across the country, we’re here to help make your transition smooth from start to finish.
Tenant Improvements (TI), also known as Leasehold Improvements, are the custom interior build outs a landlord or tenant makes to their commercial space. This complicated construction project is integral to your business, so having a project management company like Pivotal Project Management on your side is important. We have the experience, resources, and most importantly, the time, to focus on your project and ensure its success. From the initial Tenant Improvement negotiations to construction management, a project manager will protect you from cost overruns and missed deadlines that can be costly to your business. We have listed the three most important reasons for hiring a project management company for Tenant Improvements below.
1. Add an Experienced Negotiator to Your Team
Negotiating the allowance for Tenant Improvements is a key factor in any commercial lease. Having a key understanding of the commercial leasing market, construction costs, and construction management gives you the edge in negotiations. Adding Pivotal Project Management to your team brings years of commercial project management and construction cost control experience to your side of the table. We know how to create realistic budgets and schedules for construction projects and know how to leverage your position to get you the best lease terms.
2. Team Composition and Strategy
Using a project manager like Pivotal Project Management will save you a considerable sum of money. It all starts by choosing the right team. When we manage a commercial buildout, evaluating and hiring the right tenant improvement contractor and architect can make a huge difference controlling costs. We will pre-qualify general contractors and architects, gather proposals, and create an evaluation criteria matrix to provide a clear answer to find the right partners. When your team is organized and all on the same page, the results are more favorable. Deadlines will be achieved, budgets will be met, and the move in process will be smoother.
3. Control Costs with Construction Management
Another way a project manager like Pivotal Project Management will save your company money, and headaches, is through construction management. We are directly involved throughout your entire Tenant Improvement project providing the diligence and time needed (which most clients do not have) to ensure a successful build out. We hold the GC and subs accountable for quality construction and budgets, review and address all change orders, and conduct weekly site inspections and project meetings. The steps we take to control costs and manage construction will keep your Tenant Improvement project on time and on budget.
Make Improvements Without the Hassle
There are three project pillars that Pivotal Project Management follows throughout every phase of the Tenant Improvement project lifecycle. Review, assess, and improve. Having a project management company looking out for your best interests while managing your Tenant Improvements is incredibly valuable. Costly delays and change orders can quickly derail your timeline, creating lots of stress within the business, even impacting your customers. Pivotal Project Management is your key to a successful Tenant Improvement project.
If you or your client is making a move to new commercial space in the future, please contact a Pivotal Project Manager and get the conversation started.
During lease negotiations and construction buildout, 99% of the project budget is at risk, while only about 1% of the overall business itself is exposed to risk.
Pivotal Project Management Inc. is pleased to announce a suite of new services that fully tie out all aspects of a client’s project (new build construction, mergers/consolidations, tenant improvements, or relocation to an existing structure).
Our turn-key solutions at Pivotal allow for smooth transitions as the client project moves through each phase or a set of phases- inception to completion.
Due Diligence/Pre-Purchase Study
[in conjunction with Pivotal Developers LLC]
Land and environmental studies are vital components before purchasing land in which an Investor or Developer can make proper decisions about the future use of the property. Understanding the prior history of the land, use of the land during prior ownerships, and searching for environmental or other impacts/mitigation issues will allow the purchaser to consider any liabilities that may hold up the plans or incur more costs for development.
Pivotal is your ideal Program Manager in land development cases, with our background knowledge and experience in working with the local/regional Municipalities, Authorities Having Jurisdiction (AHJ’s), General Contractors, Architects, and Engineering parties to ensure the investor’s/owner’s projects fall within the guidelines and budgets to turn this investment into a living and breathing structure that has respect for the land and surrounding environment.
Relocation Planning and Management
Occupancy and/or transition services to a new space or building for your company requires a relocation project management scope, and a detailed leader to carry this constantly evolving task. At Pivotal, we understand the tight timeframes involved and the protocols that must be in place before the business can take/occupy the space, operate the business, or service the public. The relocation takes time to plan, a key communications strategy, and proper execution; great plans can greatly fail without an experienced team to execute them. The availability, coordination, and scheduling of the vendor parties, and the timeframe in which the business must be ‘live’ without disrupting productivity, employee morale, and customer service, are all factors to consider. Rely on Pivotal Project Management to expertly shepherd your business through its greatest exposure point – relocation with our expert relocation management services.
Tenant Improvement (TI) and Work Letter
Customized tenant improvements (i.e. building out your new space to the working environment, workflow, and experience you desire) are often required when a company is relocating or building out new commercial space. This allows the client to run its business in a space that fits the culture, environment, and level of productivity for daily operations and goals of the business. Tenant improvement costs (concessions) are negotiated with the landlord prior to signing a lease and involve general updates such as paint, walls, flooring, electrical, lighting, HVAC, ceiling drops/exposures, etc. Some lease arrangements call for a ‘work letter’ or detailed statement from the incoming tenant, to the landlord, identifying the build out needs of the space and/or particular requirements of the landlord to suit the tenant’s operational needs (i.e. extended power/dedicated backup power, total lumens required, paint and carpet detail, and more). Don’t pay for other’s mistakes in this process- Pivotal Project Management is your key resource for this role in ensuring your tenant improvement vision is met, while protecting the budget and delivery schedule.
Decommissioning Services
(if required)
Decommissioning a space is the most overlooked detail within a company relocation and can cause monetary setbacks to the project, issues with the landlord, and potentially impact total project schedule. Most every commercial lease has an exit clause or provision identifying how the landlord will require you to leave the space upon exit. For example, this usually means clients need to address removal of old low-voltage cabling, patch and paint of any drywall that has been damaged or otherwise perforated for hangings (pictures, signs, etc.), removal of building signage, clean or repair of damaged areas/materials, removal of anchoring’s, power units, old IT equipment, re-demising the leased space(s), leaving in ‘broom-swept’ conditions, etc. Decommissioning requirements are an afterthought, but can cost you 1.5 times your rent, and then some, if not properly addressed in time. The Pivotal Project Management team has the resources, approach, and most importantly the time to address decommissioning needs before they become a money pit.
