Knowledge What Is the Office Relocation Process and How Much Does It Cost? Explaining the Steps and Key Points to Avoid Mistakes

To successfully relocate an office, schedule management with sufficient leeway is essential. In general, many companies begin the project six to eight months before the desired relocation date. It is important to secure enough time for property selection, layout planning, various construction work, and administrative procedures. To avoid last-minute panic, first understand the overall timeline for office relocation.

The ideal schedule for office relocation is to begin planning around six months before the relocation date. For large-scale relocations or projects with extensive interior design requirements, it is not uncommon to start preparations six months to one year in advance. First, identify the issues with your current office and clearly define the purpose of the relocation. Then determine the requirements and budget for the new office and proceed with the property search.

The table below summarizes a general office relocation schedule. Understanding this flow will help you see which tasks to focus on at each phase.

As shown above, even after the property is decided, many processes proceed simultaneously, including interior work, installation of communications infrastructure such as internet and telephone lines, and restoration of the old office to its original condition. In particular, interior work and communications infrastructure arrangements take time, so selecting contractors early is an important point in preventing delays in the overall project.

It is extremely important to check the lease agreement for your current office and accurately understand the deadline for giving termination notice. In office lease agreements, the required notice period varies depending on the contract, but in many cases, notice must be given three to six months before the desired termination date. If you fail to confirm this and request termination only after deciding on the new office, you may be obligated to pay rent for the shortfall in the contractual notice period, resulting in double rent.

To minimize the period during which rent is incurred for both the new and old offices, you must coordinate the timing of the termination notice with the date when the new office becomes available for occupancy. Immediately after starting the project, be sure to check the lease agreement for your current office and simulate when you need to submit the termination notice to avoid or reduce double rent. In many cases, termination notice to the owner or property management company must be submitted in writing, so confirm the notification method and submission deadline in advance.

Reference: Mutual Termination and Obligation to Pay Rent During the Termination Notice Period – All Japan Real Estate Association (Japanese Only)

Office relocation involves various costs beyond the contract expenses for the new office, including interior construction costs, moving costs, and restoration costs for the old office. These costs vary greatly depending on office size, location, and construction details. To avoid exceeding your budget, it is important to understand the cost breakdown and typical market rates in advance.

In general, the total cost of office relocation is said to be approximately six to twelve months’ worth of rent for the new office. The amount varies significantly depending on the office grade and the level of detail in the interior design, but it is certain that a substantial amount of cash will be required as initial costs.

The main cost items and estimates are as follows. In particular, costs related to the new office contract and interior construction account for a large proportion.

As this table shows, deposits such as security deposits and guarantee deposits account for a large portion of the initial costs of office relocation. Recently, however, an increasing number of properties require no security deposit or significantly reduced deposits, and some properties offer free rent for a certain period. If initial costs and cash flow are important, prioritizing such properties can be one strategy.

*The above figures are general guidelines in Japan. Market rates and conditions differ by country and region, so please confirm details locally when making actual considerations.

The points that require the greatest caution in cost management are unexpected expenses and duplicate payments. In particular, restoration costs for the old office are a common source of trouble when vacating. It is necessary to check in advance the scope of restoration stated in the contract, whether designated contractors must be used, and the basis for estimates, and to examine whether the amount is reasonable compared with market rates.

As mentioned above, shortening the period during which rent overlaps for the old and new offices also directly reduces costs. In principle, rent for the new office is incurred during the interior construction period, while the old office is still in use. To shorten this period as much as possible, in addition to carefully coordinating the construction schedule, consider using properties that inherit the previous tenant’s interior—or setup offices that require little or no interior work. Efforts to reduce unnecessary spending increase the overall success rate of the relocation project.

Finding the office best suited to your company from among many properties is by no means easy. There are many cases where companies decide based only on easy-to-understand conditions such as location and rent, only to regret it after moving in because it is inconvenient to use or employee motivation has declined. That is why having clear evaluation criteria in advance and comparing properties carefully is the fastest route to successful office selection.

Before beginning the property search, first put into words why you are relocating. The issues an organization wants to solve through relocation differ by company, such as to accommodate an increase in personnel, to stimulate communication among employees, or to strengthen recruitment capability. If the purpose remains vague, you may simply choose a larger or cheaper location and fail to solve the original management issue.

For example, if your goal is to stimulate communication, a single-floor property where the movement of all employees is easy to grasp may be an effective option. On the other hand, if you prioritize security or independence by department, a property divided into separate rooms may be better. By not only considering management’s intentions but also conducting employee surveys to identify current dissatisfaction on the front line, you can clarify the true requirements of the office you need.

In reality, it is rare to find a “perfect 100-point” property that satisfies all desired conditions. In general, trade-offs occur among conditions: a good location tends to mean higher rent, while keeping rent low often requires compromise on building age or facilities. Therefore, it is essential to prioritize the conditions you have identified. Clearly distinguish between non-negotiable conditions and nice-to-have conditions.

We recommend creating a comparison table like the one below to objectively evaluate the properties under consideration.

By listing the information in this way, it becomes easier to build consensus within the team. You can make decisions without losing focus, such as “Property B because cost reduction is the top priority this time” or “Property A because strengthening recruitment is the goal and it has a good location.”

A new office is not just a building; it is a place of activity where employees work every day. To create an environment where employees can be productive and comfortable, layout planning is essential. Aim for a design that emphasizes not only appearance but also functionality.

The basis of an effective office layout is zoning. This is the concept of dividing office space according to use. In general, areas are divided into visitor areas, work areas, meeting areas, refreshment areas, and so on. If zoning is inappropriate, visitor voices may be clearly heard in workspaces, or concentration may be interrupted by movement to the copier, significantly reducing work efficiency.

It is also important to divide areas according to security level. Clearly separate areas where entry is restricted to authorized personnel from areas used by visitors, thereby preventing the risk of information leakage. First, place rough zones on the floor plan, then repeatedly adjust them so that the flow of people and information becomes smooth. Consulting professional designers or layout contractors at this stage can provide proposals from perspectives your company may not have noticed.

Once zoning has been decided, the next step is to design specific traffic flow. Traffic flow refers to the routes people take when moving around the office. The key is to secure sufficient width for main passageways so people can easily pass each other, and to place frequently used multifunction printers and kitchenettes in locations that are easy to access from any seat. Creating a circular traffic flow without dead ends can also produce spontaneous encounters among employees and encourage communication.

You must also remember to incorporate the opinions of the employees who will actually work there. By reflecting real on-site feedback such as “There are too few meeting rooms in the current office and reservations are hard to get,” “We want space for focused work,” or “We need booths for web meetings,” you can create an office with high satisfaction. Whether to introduce a free-address system, where employees do not have fixed seats, should also be carefully considered according to employee workstyles and job types.

Related article: Overview of business reviews and other measures for creating a smart office

Administrative procedures associated with office relocation are extremely complicated. Deadlines and required documents differ depending on where they are submitted, so if you do not manage them with a list, there is a risk of missed notifications. Delays in such procedures can also affect the company’s credibility, so caution is required.

When an office relocation in Japan is decided, the first required step is registration of head office relocation at the Legal Affairs Bureau. This is an obligation stipulated by the Companies Act and must be completed within two weeks of the relocation. After registration is complete, you may be required to submit or present a certified copy of the registry, or certificate of all historical matters, so prepare it before submitting notifications to the tax office, social insurance office, and other authorities.

The table below summarizes the main notification destinations and approximate deadlines. Use this as a reference and incorporate them into your schedule to avoid omissions.

In addition to these, there are many detailed procedures, such as submitting a forwarding request to the post office and changing garage certificates at the police station. By asking specialists such as judicial scriveners, tax accountants, and certified social insurance and labor consultants to handle the procedures on your behalf, you can proceed smoothly and reliably.

Reference: Application Forms for Commercial and Corporate Registration – Legal Affairs Bureau (Japanese Only)

In parallel with public notifications, it is also important to notify business partners and other stakeholders of the address change. As a matter of business etiquette, you should send a relocation notice or greeting letter by post or email at least one month before the relocation. If the destination for invoices changes, you must also contact accounting personnel individually.

You must also update all media where the address is listed, including your company website, business cards, envelopes, brochures, and email signatures. Revisions to printed materials take time, so begin arrangements as soon as the new address is finalized. In particular, business cards are needed for all employees, so be careful to avoid omissions in ordering.

Office relocation overseas differs from domestic relocation due to differences in legal systems and business environments, which significantly changes the points that must be considered. This section explains considerations unique to overseas relocation.

When relocating an office overseas, unlike in Japan, you must pay attention to the fact that legal regulations and systems differ greatly by country and region. In particular, the rules regarding corporate registration, tax procedures, labor laws, and personal information protection vary by country in terms of requirements and procedures. If you proceed with the same assumptions as in Japan, unexpected delays and additional costs may occur.

For example, even for registration and tax-related notifications associated with a change in head office location, submission deadlines and required document formats often differ. It is important to work with local experts such as lawyers and accountants. In recent years, regulations on personal information protection have also been strengthened in many countries, which may affect data storage methods and network design.
Furthermore, due to differences in labor laws, there may be requirements concerning office usage hours, safety management standards, and employee facilities. If these requirements are not met, there is a risk of penalties or corrective orders, so legal regulations must be considered from the property selection and layout design stages.

To smoothly relocate an overseas office, it is essential to thoroughly research the legal system of the target country in advance and organize the requirements to be complied with while receiving support from local partners and specialists.

As moving day approaches, preparations for the physical move reach their peak. To transition smoothly without stopping business operations, cooperation from all employees is essential. Do not let the person in charge handle everything alone; manage the relocation as a company-wide project.

To avoid confusion on moving day, we recommend creating a relocation manual for all employees. Clearly state how to enter the new office, the seating chart, packing rules, waste disposal methods, the schedule for the day, and other information, then hold a briefing session to ensure everyone is informed.

Particularly important is distinguishing between personal belongings and shared items. If you do not set detailed rules such as “Always write your department name and personal name on boxes,” “Manage PCs and confidential information individually,” and “Decide who will pack the contents of cabinets,” items may go missing during the move to the new office or take time to organize. Summarizing frequently asked questions in FAQ format can reduce inquiries to the person in charge.

Relocation is an excellent opportunity to clear out unnecessary items from the company. Bringing documents that have been stored for many years or equipment that is no longer used into the new office not only wastes space but also increases moving costs. One month before relocation, set up a disposal campaign period and actively promote the digitization and disposal of documents.

Because waste disposal is subject to legal regulations, you must arrange contractors that can properly process waste as industrial waste or business-related general waste. Reservations for services such as dissolution processing of confidential documents are also required early. Ask the moving company to provide cardboard boxes in advance, and encourage employees to start packing from items with low usage frequency. Rushing to pack just before the move can cause damage or loss.

The key points of this article are as follows.

• Plan office relocation more than six months in advance, and coordinate the timing of property searches and termination notices.
• Use six to twelve months’ worth of rent as a cost guideline, and consider measures to reduce restoration costs and double rent.
• When choosing a property and designing the layout, clarify the purpose of relocation and priorities to create clear decision-making criteria.

Office relocation requires a great deal of effort, but it is also an excellent opportunity to support company growth and improve employee comfort. By steadily following the steps introduced in this article one by one, you will be able to achieve a satisfactory relocation. Start by creating a schedule.

Are you struggling with office relocation or opening a new office? KDDI collaborates with highly experienced partners to provide one-stop support for all processes required for relocation, from property searches and interior construction to ICT infrastructure development. Through centralized management by specialists, it is possible to minimize the workload of the person in charge. Please see the page below for specific service details.