Companies seeking to lease office space can often be faced with the decision of whether or not to consolidate their various spaces into one larger space.
Consolidation can be considered for a number of reasons. Below are five key benefits to consolidating your office space.
- Efficiencies in space and staff: Consolidating office space can eliminate redundancies in your operations, such as needing only one reception/receptionist, being able to consolidate office supplies and storage, being able to centralize the mailroom, synthesize the photocopy area and equipment, and integrating one kitchen or staff area. A larger office space also usually means better space efficiency, which translates to lower operational costs for your business.
- Amalgamation: Putting all your resources, management and staff together reduces travelling time between offices and make it easier for the different facets of your business to work together more seamlessly. Efficient layout plans, which are more feasible in larger offices, can also improve teamwork, open up the opportunity to cross-share and allow the possibility of new sellable services that would not otherwise be possible in a business with various locations.
- Leverage and Flexibility: Larger office spaces create greater leverage in terms of negotiation with the landlord. It is also possible to contract the space in the future by subleasing the space when the unused spaces are in the same building, as long as it is negotiated correctly in your lease agreement.
- Improve Employee Pride and Morale: A larger office space often provides the opportunity to improve organizational efficiencies by streamlining communication, knowledge transfer and workflows, and creating synergies between departments and employees. Having your leaders on-site under one roof also improves employee accountability, leading to greater productivity. Since you have efficiencies of scale, the company may even be able to provide work/life balance amenities (e.g. fitness centres, daycare) which help improve job satisfaction.
- Strengthen Company Value and Culture: Company culture is the life blood that keeps any company healthy and thriving, and a positive culture is greatly enhanced and more easily nurtured and influenced when employees share the same workspace. Having all your employees together also makes it easier to clarify corporate strategy, strengthen public image and branding, create a consistent experience and enhance business continuity.
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