Why Do Companies Move Offices?
A recent Knotel survey of 170 executives who work at mid-sized companies in the 25 largest U.S. urban areas revealed that the top factor in changing office location is company growth. Other reasons included new workspace/workflow requirements or lease expiration. Companies that move for “growth” reasons versus “non-growth” tend to be “relatively less concerned with price and more about amenities and flexibility of the lease.” A majority of the companies reported having moved only once in the past decade and more than half said they had leases between five and 10 years in length. Almost one-third indicated they had leases of 10 years or more. High rates of growth may conflict with being bound to a long-term lease.
Companies responded that the consequences of the move included loss of productivity (52.2 percent) and lower morale as a result of sub-optimal space (26.1 percent). However, when the new space is an improvement, 45.3 percent of respondents indicated a boost in morale.