7 Factors That Make or Break A Commercial Office Restack

Restacking offers solutions that address new challenges

Adjusting office space to adapt to the hybrid work model.

How a hybrid environment operates depends on the company, but it could include fewer permanent onsite employees or staggered schedules.

A hybrid workplace might be almost entirely remote with occasional in-person meetings, or it could be almost entirely office-based, with a few remote workers. Each hybrid model will require different office space configurations to maximize workflow. In many cases, an office restack is the perfect solution.

Space consolidation.

Downsizing was an unfortunate side-effect of the pandemic. Empty seats in an office affect focus, efficiency, and productivity. They also pose a threat to morale.

Restacking is an opportunity to adjust an office to achieve better utilization in the future.

To take advantage of generous lease concessions provided by landlords.

Vacancy numbers are currently high, and many landlords are offering attractive incentives to encourage tenants to stay. These incentives include longer periods of free rent, higher tenant improvement allowances, shorter or more flexible lease terms, reduced or waived amenity fees, and more.

Generous concessions offered during lease renewals can sometimes offset the cost of a restack over the cost of a full relocation.

Companies should focus on data when considering a restack

The decision to relocate or restack can be complicated. It is a process that involves thoroughly evaluating your current space to compare intrinsic benefits to hard dollars. It should factor in existing conditions with landlord allowances and more.

Relocation takes time and comes with a fair amount of risk. You will have to select the right partners, conduct a site selection, negotiate a lease, implement internal move management, external communication, and so on. A commercial office relocation is a big job that requires a lot of teamwork.

Restacking can also be costly and time-consuming. Factors that increase schedule and cost include swing space availability, the quantity and complexity of phases on your project, the amount of off-hours work required, and overall project duration.

The best way to assess your unique situation is to involve a contractor who can create a detailed cost study to help decide which strategy is most beneficial.

Construction Benefits of Commercial Office Space Restacks

From a construction perspective, a restack offers several opportunities to save time and money.

The biggest advantage of a restack is the ability to reuse existing offices, meeting rooms, break rooms, IT rooms, reception areas, and other features. If the current space configuration works, and a simple cosmetic upgrade is all that is needed, a restack avoids major mechanical, electrical, or plumbing upgrades.

When a restack involves multiple floors of work in phases with similar design and construction plans, contractors have the advantage of submitting plans for all phases at once. This yields early material approvals and early identification of long lead items, which significantly reduces the time spent on the review process.

Creating consistent plans for each phase allows for buying materials in bulk to be stored and used for multiple phases, which also saves on costs.

Contractors also have the advantage of building downhill momentum, which comes from applying experience from the previous phase to subsequent phases. 

Frequently Overlooked Factors of Commercial Office Space Restack Projects

An office restack can offer some construction cost savings. Restacking requires very careful planning and coordination. An experienced general contractor can help you analyze the data and manage the risk to achieve implementation and integration that controls costs.

Here are some important considerations that can make or break the success of your restack project.

1. Identify a swing space

The most significant edge to have in a restack is the use of a swing space, or temporary workspace for employees to occupy throughout construction. Spending a little extra time to ensure the swing space is not only functional but truly comfortable will have surprising results on productivity and morale. This can involve something as simple as creating an alternate breakroom.  

A quality swing space ensures business continuity and prevents the need for overtime labor costs. If a swing space is not available, your contractor will need to divide your office into sections, shifting people as minimally as possible. This will likely lead to some off-hour work to coordinate phasing and limit business disruption.

2. Plan extensively to ensure uninterrupted business connectivity

Bring your IT team in early in the planning process to take an active role in ensuring continuity throughout all phases of construction. Set up redundancy in your technology and network connectivity and run several pre-tests before decommissioning existing technology systems.

There is no greater disruption to business than a data network that is down.

3. Be mindful of the existing conditions of your space

The current condition of the space including restrooms, drywall, floors, window shades, and hot and cold issues, can either save or cost you a lot of money during a restack.

Engaging a project team to evaluate existing conditions will be beneficial while re-negotiating lease terms to identify items that should be covered by the tenant improvement allowance. It will also determine if anything needs to be removed, relocated, or demolished.

4. Don’t take safety and protection for granted

Carefully plan the sequence of the restack project and think through its impact on workers. This will allow the contractor to shift construction zones and develop plans to build protection barriers and partitions with negative air machines to block out noise and dust and provide regular clean-up.

A comprehensive safety plan that satisfies both the business and contractor’s needs is key to saving time and money and ensuring minimal impact on business operations.

5. Be realistic (not overly optimistic) in your timeframe

A restack often requires you to shift entire teams to new areas as the space is being built. Planning enough time for the move itself is critical. Allotting a weekend to complete the process is not realistic.

Be mindful of things that take time to resolve like connectivity, furniture knockdowns, and the relocation of necessary files, tools, and personal items for employees to be comfortable and productive.

6. Manage expectations through clear communication

Partner with a team that has experience managing restacks. Phased, occupied projects require experience and careful attention. Having a partner who can provide creative ways to communicate major milestones in construction progress, especially the activities that may cause disruption (dust, noise, odors) to your team is vital.

This seems like a no-brainer, but can be easily overlooked, causing backlash and delays.

7. Have a plan for orphaned furniture

Depending on the lease agreement, tenants may need to prepare a strategy to deal with the left over furniture from a previous space. Options here include recycling, liquidation, or donation to a non-profit or organization in need.

There are many moving parts to manage in a restack and it is critical to have the right partner in your corner. If you have questions about your office space or would like to discuss a potential restack or relocation plan, we are happy to assist.