Relocating a business can be both an exciting and daunting endeavor. Whether you're moving to access a better talent pool, lower costs, or expand into new markets, the real estate aspect of the move plays a massive role in determining the transition’s success. But here's the kicker: overlooking key real estate concerns can throw even the most meticulously planned relocation off course.
Let’s break down the key considerations business owners need to address when tackling real estate during a relocation.
Why Companies Relocate — And Why Real Estate Matters
According to CBRE, 96 new headquarters relocations were announced in 2024, totaling 561 since the trend began gaining momentum. Businesses cite factors like proximity to clients, tax advantages, and workforce availability. But real estate? That’s always at the heart of the move.
A property that's too small, poorly located, or expensive can sabotage long-term goals. Conversely, the right space can boost productivity, reduce overhead, and attract top talent.
Start With a Timeline
Relocation isn't a quick process. Companies that succeed usually start planning 12–24 months in advance. Why so early?
- Commercial lease negotiations can take months.
- Tenant improvements may add 3–6 months.
- Permitting delays are common.
- Staff communication and logistics require buffer time.
And if you're purchasing rather than leasing, you're dealing with factors similar to the typical home closing timeline, which can stretch 30–60 days—or more for commercial properties.
Choosing the Right Property: Evaluation Checklist
When assessing potential locations, use this three-tier checklist to narrow your options:
1. Financial Considerations
- Total cost of occupancy (rent, taxes, CAM charges)
- Property tax rates in the new area
- Potential incentives or grants from local governments
2. Functional Requirements
- Square footage and scalability
- Infrastructure (IT, utilities, access)
- Customization potential for layout and branding
3. Market Context
- Vacancy and absorption rates
- Growth projections for the area
- Local labor market strength
The 2025 Corporate Relocation Survey by Atlas Van Lines found that while budgets have increased, so have complications—rising mortgage rates and unpredictable property availability are slowing down decision-making.
Common Roadblocks and How to Tackle Them
Relocating without headaches? Rare. But knowing the typical roadblocks helps you sidestep them.
Zoning Surprises
Zoning mismatches can stall or cancel deals. Always verify:
- Permitted uses
- Parking requirements
- Environmental regulations
Lease Agreement Pitfalls
Some landlords include auto-renew clauses or offer below-market rates initially with steep increases later. Have your legal team review everything.
Real Estate Market Volatility
Market conditions shift quickly. According to TRC Global Mobility, U.S. home prices are expected to rise by 1.8% in 2025 and another 2.3% in 2026, with commercial trends often following suit.
That means locking in a lease early or negotiating long-term rate caps may protect you.
Get the Right Experts on Board
No matter how seasoned your in-house team is, relocating a business is not a DIY project. Here’s who should be on your roster:
- Commercial Real Estate Broker: They know the market, can access off-market deals, and negotiate on your behalf.
- Relocation Project Manager: This pro keeps all moving parts aligned.
- Legal Counsel: For lease reviews, zoning challenges, and due diligence.
- Space Planner or Architect: To make sure the space fits both now and in five years.
The Role of Communication
Even the best property won’t solve morale issues caused by poor communication. Keep your team in the loop.
Tips for Smooth Internal Messaging
- Schedule regular town halls or Q&A sessions.
- Share floorplans and renderings to build excitement.
- Be transparent about why the move is happening.
North American Van Lines reports that talent retention and mobility are major concerns for relocating companies. Involving staff in the planning process increases buy-in.
Choosing the Right Market: It's Not Just About Cost
Low rent? Great. But consider what you're giving up.
The CBRE Fortune 500 HQ study found that 30% of Fortune 500 companies made major headquarters changes between 2018 and 2023. Texas, Florida, and Georgia saw net HQ gains, while California and New York experienced losses.
Key considerations include:
- Proximity to clients and suppliers
- Access to talent
- Commute times for your employees
- Brand alignment with the location
Estimating Your Relocation Duration
A realistic timeline avoids stress. Here's a sample:
- Planning and Strategy (3–6 months): Budgeting, team selection, goal-setting
- Site Selection (3–4 months): Market research, tours, shortlisting
- Negotiation and Legal (1–2 months): Lease or purchase agreement
- Buildout and Preparation (4–6 months): Construction, IT setup
- Moving and Launch (1 month): Packing, transporting, settling in
Of course, timelines may vary—but factor in these stages from the start.
Final Thoughts
Relocating a business isn’t just about packing boxes and forwarding the mail. It’s a real estate challenge that demands planning, foresight, and the right team. By starting early, evaluating commercial properties strategically, and leaning on real estate professionals, business owners can make smarter choices that pay off in the long run.
From navigating mortgage rates to avoiding lease traps, the difference between a chaotic move and a smooth transition often comes down to one thing: preparation.
Don't let your next big move become your biggest headache. Start planning today—with your real estate checklist in hand.
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