The Pros & Cons of Relocating to a Pre-Fitted Office Space.

How does an organisation choose between a pre-fitted office or investing in a custom fitted workplace?

When moving to a new office location, organisations often grapple with a crucial decision: should they choose a space with a cold shell and invest in a custom commercial office fitout or move into a pre-fitted office? This choice isn't just about picking a space—it's about aligning your workplace environment with your business's unique needs, culture, and future growth. The article will help you navigate this decision by exploring the key aspects of both options.

Custom Fit-out Office Spaces: Tailored to Your Vision

Customisation and Flexibility

A custom or bespoke fit out is like a blank canvas, offering you the freedom to design a workspace that perfectly aligns with your brand identity, workflow, and employee needs. Every aspect, from layout to furniture, lighting to technology, can be tailored to your specific requirements. This flexibility allows you to create an environment that enhances productivity, supports collaboration, and fosters creativity.

Asher Frankel, our Head of Client Relations, interviewed with Commercial Real Estate to discuss the ins and outs of different fit outs.

Asher revealed how bespoke office fit outs often result in a more satisfactory workplace experience, especially when the design incorporates direct employee feedback.

"This early collaboration is crucial for enhancing workplace performance. Our clients often use the workplace strategy data to inform the design decisions and create a tailored design that not only meets their needs but also propels them toward achieving their business objectives.”

Asher Frankel, Director of Client Relations at Axiom

Long-term investment

Construction delivery times for custom fit outs typically range up to 12 weeks and require an initial investment, but they offer significant long-term benefits. A well-designed, customised office can adapt to your business's growth and changing needs without the need for disruptive relocations or costly renovations. This strategic investment can yield high returns in terms of employee satisfaction and operational efficiency.

Below: An example custom office fit out for Slater & Gordon. 12 weeks construction over 3 floors and 4,000 sqm, new technology, collaborative spaces, meeting rooms and workstations to suit the firms workplace goals, making it worth the wait. 

Brand Identity and Culture

A custom office fit-out allows your workspace to reflect and reinforce your company’s culture and values. From the moment clients or potential employees step through the door, they experience a space that tells your brand’s story and conveys your commitment to quality and innovation. This can be a powerful tool in attracting and retaining top talent by creating a lasting impression and clearly communicating your mission.

Potential Drawbacks

It is important to be aware that the bespoke nature of custom fit outs can lead to higher expenses, both in terms of design and construction. Additionally, the level of detail and customisation involved can result in extended timelines, potentially delaying your move-in date. These factors may add complexity to your planning, particularly if you’re working with tight deadlines or budget constraints. But with strategic planning and a dedicated design and construction team, these obstacles can be overcome.

Pre-fit Office Spaces: Convenience and Speed

Ready to use

Pre-fit office spaces, often found in serviced offices or coworking environments, come ready for immediate occupation. These spaces are typically fully furnished and equipped with all the necessary basic amenities, from high-speed internet to meeting rooms. This option is ideal for businesses that need to move quickly or those that prefer a plug-and-play solution. It can benefit small businesses with a tight budget that are not looking to spend a lot on their office. Pre-fit can also help growing businesses that are unsure of where they will be in the near future, since it is easy to vacate.

Cost effective and time saving

One of the primary advantages of pre-fit offices is the cost and time savings. Since the space is already set up, there's no need for the significant upfront investment associated with custom fit outs. This can be particularly advantageous for startups, small businesses, or companies in need of a temporary or flexible workspace solution. Pre-fit offices are easy short-term solutions as they are ready immediately.

Below: An example pre-fitted office space in Sydney. Whilst pre-fitted features vary, they are often basic. 

Potential hidden costs

However, it's important to consider that pre-fit spaces might not be as turnkey as they initially appear. If the existing setup doesn’t fully meet your business needs, you may incur additional expenses to make necessary adjustments. For instance, adding power points, data cabling, or supplementary air conditioning to support your operations can lead to unexpected costs and potential delays in moving in. Pre-fit offices can also lead to higher rent since a landlord does not have to disclose the actual cost of the fit out and can inflate the lease to recoup their expenses, in turn it can impact your lease negotiation opportunities and reduce potential incentives.

Limited customisation

The trade-off for convenience in pre-fit spaces is the lack of customisation. Pre-fit office spaces tend to be a ‘one-size-fits-all’ design. Landlords are obligated to create generic workspace that has the widest tenant appeal. Over time, this could impact employee satisfaction and productivity if the space doesn’t adapt well to your company’s growth or evolving work processes. Since it is difficult to align a pre-fit office to your organisation’s brand identity, company unity and cohesion is potentially reduced, leaving employees feeling dissatisfied.

Quality and infrastructure risks

Another consideration is the quality of materials and infrastructure. Landlords of pre-fit spaces may use lower-quality products and materials to minimise costs on their end. This can lead to compromised aspects of the office environment. For example, minimal or no acoustic treatment, lack of IT and AV infrastructure, or insufficient power or data points can negatively impact the functionality of the space. Over time, these deficiencies could affect employee productivity and satisfaction, ultimately reducing the value of the cost savings.

“We frequently encounter client tenants who find that leased office spaces with standard spec fit outs fall short of meeting their needs. These spaces often appear basic, are built with lower-quality products and materials, and usually require significant additional fit out work to become fully functional and reflective of the client’s brand identity,” says Asher.

Making the Right Choice for Your Organisation

Deciding between a custom fit and a pre-fit office space depends on several factors unique to your organisation, including your budget, timeline, and long-term business goals.

• If your priority is to establish a strong brand presence, foster a unique company culture, and invest in a workspace that will grow with your business, a custom fit office is likely the better option.

• However, if you need a quick, cost-effective solution that offers flexibility without the commitment of a long-term lease or significant upfront costs, a pre-fit office space might be the right choice.

Below: Compare the workplace features of bespoke (custom) office fit-outs vs a spec or pre-fitted space.

Ultimately, the best decision will balance your immediate needs with your long-term vision, ensuring that your workplace not only supports your business today but also sets the stage for future success.

While both custom fit and pre-fit office spaces have their merits, a custom fit office better serves organisations seeking to create a workspace that truly aligns with their brand, culture, and long-term vision. Pre-fit office spaces offer convenience and cost savings, but they often fall short in delivering the tailored experience that a custom fit office provides. For organisations looking to invest in a workspace that not only meets their immediate needs but also drives future success, a custom fit office is the better choice. If you need advice on what best suits your organisation, consider a workplace strategy.