The Relocation Process
This is just a small sample of what's included in the complete Industrial Relocation Guide. Request your free copy.
Step 1 The Ideal Property
Before looking for a new location or deciding on relocating, it is important
to assess your current and future needs and visualize your ideal property. This is part of the relocation process. What
are the geographical requirements? What are the physical facility requirements?
Make a detailed list of what you need in a new facility. This document can then
help your real estate agent look for the right property, and can help you and
your staff evaluate alternatives.
Step 2 An Ounce of Strategy
Once you know what you need in a facility, set a strategy for the relocation.
This will include a general time table (e.g. we need to move by next May), the
assignment of a relocation team, and at least preliminary budget parameters
(including financing alternatives). Use the budget checklist in this guide to
help you make sure you aren’t forgetting any big-ticket items and talk
to a banker about financing options. Creating a written strategy will help you
evaluate alternatives, weed out the ones that don’t meet your timeframe,
and decide early on if it even makes sense to relocate.
Step 3 The Hunt
Once you know your requirements, your budget and your timeframe, you can begin
looking for specific properties. This is where a good real estate agent can
use your ideal property guidelines from step 1 to do a systematic and efficient
gathering of specific property information.
Step 4 Narrow the Field
This is probably the hardest step. You have several properties that might work,
and now you need to evaluate each of those to determine which is best. In addition
to such items as appropriate zoning, key areas to consider are:
- employee retention (for example, one location may require employees to travel significantly farther),
- budget (this is where you can begin to firm up the initial budget you created in step 2 above),
- facility characteristics (what needs to change for each property to make it work for you, or make it as close to ideal as possible).
It is here that you should involve vendors and contractors to provide necessary real property improvement estimates for both time and money. Can a new loading dock be added? What will that cost? How much will that delay moving in? Etc. MIRA has researched the vendors and contractors listed in this guide and recommends their services.
Step 5 Decision Time
You have evaluated the best alternatives, you know initial budgets and timeframes,
it is time to make the “go/no-go” decision. Do you modify your existing
facility to make it work or continue with the relocation process?
Step 6 Negotiations
Begin negotiations for property and based on those negotiations make your final
property selection. Execute a contractual agreement to lock in the property.
Step 7 Due Diligence
Once a facility is under contract, it is time for detailed inspection of the
physical integrity (roof, walls, foundations, parking lot, electrical service
and wiring, mechanical, HVAC, plumbing and building code compliance.) Environmental
conditions must be determined. Hire an engineer to conduct a Phase I or Phase
II audit if necessary. Determine the scope and final budget of making the new
facility operationally ready. (See the budget items on page 6 to make sure you
aren’t leaving anything out). Vendors and contractors should be willing
to give you estimates from which you can build your budget.
Step 8 Commitment & Timeline
Finalize agreement on due dilligence items and establish a projected move-in
date. (Note that you may need overlap time between the two facilities to give
you ample time to transfer your operation from one to the other as seamlessly
as possible). It is important to consider the impact on your current clients.
Can production be down during the relocation? Do you need to outsource for some
period of time? What are the contingency plans if the move takes longer than
expected?
Step 9 The Real Work Begins
It is time to select contractors and vendors and have them begin in earnest.
See the sample timeline provided in this guide. Some of the key areas with the
appropriate vendors include:
- Build-out and remodeling/construction
(engineer, architect, general contractor, specific trades) Production floor (plant engineer, electrical, mechanical & storage contractors) - Furniture and office equipment
(architect, interior designer, furniture and equipment dealers) - Phone and data systems and cabling
(phone company, telecommunications contractor, computer vendor, cabling) - Signage & Image enhancement
(sign company, public relations, marketing, web design, printer) - Moving
(moving company, rigger)
Step 10 Relocation
In preparation for relocation, everything needs to be inventoried, unplugged,
organized, packed, and labeled. Once the space is ready for occupation, everything
needs to be moved to the new location, unpacked, plugged-in and functional.
Staff need to know about workspace, security, parking, emergency exits and any
new policies.
This Relocation Process article is just a small sample of what's included in the complete Industrial Relocation Guide. Request your free copy.