Why do companies move? The most common reasons for changing premises
Guide

Why do companies move? The most common reasons for changing premises

No company moves without a reason. Usually, one of a handful of things sets the process in motion. We go through the reasons that most often lie behind a move, and what to think about in each situation.

Lauritz M. KittelsenLauritz M. KittelsenOctober 22, 20264 min read

A move rarely starts with a search for premises. It starts with something no longer working: it is too cramped, too expensive, too big or too far away. Understanding why you are considering a move makes it easier to know what to look for, and whether moving is the right answer at all.

You have outgrown your premises

The clearest sign is that you are short of space. There is competition for meeting rooms, new employees do not get a permanent desk, or it is hard to have a conversation without disturbing others. Before you start looking, work out how much space you actually need, including two to three years from now. Read how many square metres you need per employee.

You have too much space

The opposite also happens. Downsizing, more remote work or a reorganisation can leave large parts of your premises empty while you keep paying for them. If there is a long time left on the lease, subletting can be an alternative to moving. See what to do when you no longer need your office space and our guide to subletting.

Your lease is coming to an end

Most commercial leases in Norway are fixed-term and, as a rule, cannot be terminated before the lease period ends. The end of the lease is therefore the natural time to consider whether to stay or move, and it is also when you are in the strongest position for any renegotiation. Read about how lease term, termination and options fit together and whether to renegotiate or move.

Your costs have gone up

Rent is usually adjusted annually in line with the consumer price index (CPI), and common costs can rise without you getting anything new. Over a few years, this can mean you pay more than comparable premises cost in the market. Check what indexation has done to your rent with our CPI calculator, and compare the total cost with the alternatives. Also read what is included in common costs.

The office does not fit the way you work

Many offices were fitted out for a different working day than the one you have now. More video meetings call for more small rooms, and more employees back in the office call for more space than you may have planned for. Read about why home offices are shrinking and how to plan the future workplace.

The location no longer works

Location is about more than an address. How easy the office is to reach by public transport, proximity to clients and the kind of environment you are part of all affect both recruitment and how often employees come in. See what different industries should look for.

The building no longer meets your standards

Older buildings may have a poor indoor climate, high energy use or lack what employees expect, such as bicycle parking, changing rooms and a canteen. If you have your own climate targets, the energy label and environmental certification also matter. Read what the energy label tells you about the building.

Warehouse and retail

The reasons are often the same for warehouse and retail premises, but the criteria are different. For a warehouse, it is often about clear height, loading doors and access for heavy goods vehicles, while a retail unit stands or falls on footfall and visibility. Read why clear height determines a warehouse’s value and our guide to renting warehouse space.

The common denominator: the decision starts before the search

Whatever the reason, it pays to start early and know what you need before you begin viewing premises. That gives you time to compare options, and you avoid having to take whatever happens to be available. Start with the needs analysis, and read when to start looking for new office space.

FAQ

What are the most common reasons companies move? Growth, too much space, a lease coming to an end, higher costs, an office that does not fit the way you work, location and the standard of the building.

Can we terminate our lease early to move? As a rule, no. Most commercial leases in Norway are fixed-term and run for the full period. Subletting or an agreement with the landlord may be possible solutions. Read more about termination and lease term.

Should we renegotiate or move? It depends on how well your current premises fit your needs, and what comparable premises cost in the market. Read our guide to renegotiating or moving.

What if we have too much space but a long time left on the lease? Subletting the surplus space is often the most realistic solution.

Lauritz M. Kittelsen

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Lauritz M. Kittelsen

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