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Office refurbishment and relocation are only cheaper when their total cost over the same time period is lower. Refurbishing usually wins when your current lease, location and building services still work and the project can be phased. Relocating can cost less when you can take a smaller or ready-fitted space, secure rent-free time or a landlord contribution, or materially reduce ongoing occupancy costs. Compare both scenarios with identical headcount, workplace standards and decision horizon—not a refurbishment quote against a new rent.
At a glance
| Name | Best for | Key spec | Indicative cost / price | Checked |
|---|---|---|---|---|
| Refurbish in place | Businesses whose building and location still fit | Existing lease and services retained; work can be phased | South Australia benchmark: A$1,300–A$2,200/m² for refurbishment, before listed exclusions | November 2026 |
| Relocate | Businesses needing a different footprint, building or location | Destination fit-out plus move, overlap and old-lease exit costs | South Australia benchmark: A$1,700–A$2,950/m² warm shell or A$2,400–A$3,750/m² complete fit-out, before listed exclusions | November 2026 |
Prices checked November 2026.
Benchmarks are location- and scope-specific, not quotations. The South Australia figures assume fewer than 12m² per workpoint and exclude professional fees, statutory charges, GST, escalation and agency costs. Relocation may also involve a ready-fitted space with a different cost profile.
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Which is cheaper: refurbishing an office or moving?
There is no reliable rule that one option is always cheaper. The lower-cost choice is the scenario with the smaller combined capital, occupancy, transition and exit cost over a defined horizon while still meeting your capacity, location, technology and workplace requirements.
A refurbishment quote covers only part of the stay option. You still pay rent, rates, service charges, insurance and utilities, and you may need temporary space, storage, decanting or remote-work arrangements. A move has its own fit-out and rent, plus removals, IT migration, overlap between premises and any dilapidations or reinstatement liability at the old office.
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Model both options for the period that matters to the business—often the remaining lease term plus the next renewal decision. Use the same headcount, service level, inflation assumptions and treatment of tax for each scenario. A cheaper construction scope is not a saving if it leaves you with an office that cannot support the workforce or clients.
What costs belong in the comparison?
Build two complete scenarios with recurring and one-off lines. The following structure prevents the common mistake of comparing a construction estimate with a headline rent.
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Outbyte Driver Updater FREEScan for outdated or missing drivers - takes under a minuteDriver Scan →Outbyte PC Repair FREERepair Windows errors before they cause bigger problemsFix Now →| Cost category | Refurbish in place | Relocate |
|---|---|---|
| Construction and design | Survey, design, approvals, project management, contractor, demolition, services, furniture and technology within the planned scope | Destination survey and design, approvals, fit-out, furniture and services; establish whether the space is ready-fitted, a warm shell or a complete fit-out |
| Occupancy | Existing rent, business rates or local equivalent, service charge, insurance and utilities; include any renegotiated terms | New rent, rates, service charge and other local charges, plus any overlap with the old premises |
| Lease exit | Potentially deferred until the current term ends; check repair, reinstatement and make-good obligations | Early-termination negotiation, dilapidations or reinstatement at the old premises, deposits and legal or advisory costs |
| Moving and systems | Decanting, temporary moves, storage, network and AV changes if work cannot be phased around staff | Removals, storage, broadband, network and AV migration, signage, cleaning and security setup |
| Incentives and savings | Landlord contribution, rent-free period, reuse of furniture and existing infrastructure | Rent-free period, fit-out subsidy, landlord contribution, ready-fitted space or a smaller footprint |
| Business impact | Noise, restricted access, phased work, temporary premises or remote working | Move downtime, transition workload, employee commute changes and schedule risk |
Local lease law determines which obligations apply. Have the current lease and any proposed lease reviewed by an appropriately qualified local property adviser before treating an estimate as final.
What do published fit-out benchmarks actually tell you?
Published figures are useful for setting a range, not for approving a budget. They differ by country, currency, building condition, density, finish level, date and exclusions.
- The South Australia Department for Infrastructure and Transport guidelines (November 2024) give preliminary physical-construction benchmarks of A$1,300–A$2,200 per m² for refurbishment, A$1,700–A$2,950 per m² for a warm-shell fit-out and A$2,400–A$3,750 per m² for a complete new fit-out. The basis is under 12m² per workpoint. Demolition, services and furniture are included in the physical construction figures, while professional fees, statutory charges, GST, escalation and agency costs are excluded. Special requirements can change the result.
- JLL’s Global Office Fit-Out Costs Guide 2025 reports a global average of US$1,950 per m², with a range of US$770–US$3,790 per m² for its standardized medium-quality contemporary CBD office. Its regional examples include US$3,070/m² for North America and US$1,460/m² for Asia Pacific. Those figures are not directly comparable with the South Australian series because scope, currency and geography differ.
- For U.S. and Canadian projects, JLL’s 2026 guidance cites an average of US$295 per square foot for a medium-quality corporate office and says fit-out costs rose 3%–10% year over year through mid-2026. Treat this as a regional benchmark for that market and period, not a quote for another city.
- The same global guide shows average regional reinstatement figures of US$140 in EMEA, US$170 in APAC and US$110 in the Americas. JLL notes that the required work varies substantially—from full reinstatement and repair to removal of furniture, fixtures and equipment—so your lease wording and local practice take precedence.
How can lease dates and incentives change the answer?
Lease timing can reverse an apparently clear result. A break date or expiry may create leverage to renegotiate rent, reduce the footprint, obtain a contribution or take rent-free time. Conversely, leaving early can trigger notice requirements, compensation, reinstatement or a period in which you pay for two premises.
List the current lease’s break and expiry dates, notice windows, permitted alterations, repair standard, reinstatement wording, deposit requirements and any landlord consent process. For a destination, record the lease length, review mechanism, incentives, fit-out contribution, handover condition and responsibility for building services. Separate an incentive from a true saving: rent-free months reduce cash cost only if the timing and conditions are achievable.
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Carter Jonas describes efficient real-estate management as important to profitability because property is “typically the second highest operating cost of most businesses after staff salaries”; that is its characterization, not a universal statistic. Its Q1 2026 occupation-cost guide illustrates why rent, incentives and timing must be assessed together.
When does refurbishing in place usually make financial sense?
Staying is often stronger when the current location is valuable, the lease has time left, the building’s mechanical and electrical capacity is adequate, and the work can be delivered in phases without a long decant. Reusing partitions, furniture, cabling and other infrastructure can reduce capital cost, although each item should be checked for condition, compliance and compatibility with the new layout.
Refurbishment is not automatically low-risk. Survey the existing services and structure before fixing the scope; upgrades discovered after construction starts can be expensive. Price temporary seating, storage, remote-working support and out-of-hours work where staff cannot remain in the affected area. Include design, approvals, project management, contingency and professional fees, which some published benchmarks exclude.
Staying also preserves established client access and employee routines. That value should be recorded as a business requirement, not treated as an unpriced assumption. If the current building cannot provide the required capacity, accessibility, technology or energy performance, a low refurbishment quote may simply defer the cost of moving.
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A move can win when the existing office is oversized, expensive to operate or structurally unsuitable, and a destination can deliver the required service level in less space. Consolidating teams, adopting a more efficient density, or selecting a ready-fitted office can reduce construction and ongoing occupancy costs. A landlord contribution or rent-free period can further change the net present cost.
Price the destination in its actual handover condition. “Ready-fitted” can mean furniture and services are usable, while a warm shell generally requires more tenant work; the lease and specification should define what is included. Add survey and design fees, approvals, furniture changes, IT and AV, broadband, security, signage, cleaning, removal, storage and staff time.
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Do not overlook the old premises. Obtain a written view of dilapidations or make-good exposure, negotiate the exit where possible and model overlap rent, rates and service charges. JLL defines reinstatement or dilapidations as the tenant’s liability for how the premises must be returned at lease end; the exact scope is determined by your lease and local practice.
How do you compare the two options step by step?
- Set the decision horizon. Use the period that captures the relevant break, expiry or renewal. State the assumed opening date, project completion date, rent reviews and escalation treatment.
- Define the required workplace. Fix headcount, workpoints, meeting rooms, collaboration areas, storage, client facilities, accessibility, technology and growth allowance. Apply the same requirements to stay and move.
- Measure the current and candidate spaces. Confirm usable area, density, building services, condition, access, parking or transport needs and energy objectives. A smaller destination is not a saving if it cannot deliver the agreed service level.
- Obtain comparable scopes. Ask for an itemized refurbishment proposal and one or more destination proposals. Require separate lines for demolition, services, furniture, IT, professional fees, approvals, contingency and taxes. Identify whether each destination is ready-fitted, warm shell or complete fit-out.
- Review lease obligations. Check break and expiry dates, notice periods, alterations, repair and reinstatement wording, deposits, incentives and landlord contributions with a local property adviser.
- Add recurring and one-off costs. Include rent, rates, service charge, insurance and utilities; then add construction, design, furniture, IT, moving, storage, temporary space, overlap and exit costs.
- Price operational disruption. Record downtime, temporary seating, remote-work arrangements, restricted access, employee travel changes and internal project resources. Use a documented assumption rather than a zero line.
- Run sensitivities. Recalculate with a smaller footprint, delayed completion, reduced incentive, higher reinstatement cost, longer overlap and a shorter remaining lease term. Note which assumptions change the ranking.
- Select the lowest-cost compliant scenario. Reject an option that fails capacity, location, technology, accessibility or sustainability requirements, even if its headline total is lower.
JLL’s stay, renovate or relocate framework emphasizes comparing location, disruption, expansion and workplace needs alongside cost. Its office-project guidance likewise treats scope, timing and delivery risk as part of the decision.
What should a refurbishment budget contain?
Request a scope that starts with surveys and ends with commissioning, not just a rate per square metre. It should identify demolition, partitions, ceilings, floors, lighting, power, heating and cooling, fire and life-safety systems, data, access control, furniture, signage, decoration, cleaning and handover. If the project changes the layout, check whether planning, building or landlord approvals are required and price the associated professional work.
Separate reusable assets from replacements. Reusing furniture or cabling can lower capital cost, but only after condition, warranty, ergonomics and capacity are confirmed. Include a contingency appropriate to the survey confidence and building complexity; do not hide it inside an unexplained unit rate.
If staff remain during works, divide the programme into zones and state which areas are unavailable at each stage. Price decanting, temporary storage, out-of-hours working and additional cleaning. If phasing is impossible, compare the cost of temporary premises or remote operation with the overlap and downtime of a move.
What should a relocation budget contain?
Start with the destination’s measured area and handover condition, then build the fit-out scope to the same workplace brief used for refurbishment. Add legal and property advice, surveys, design, approvals, procurement, project management, construction, furniture, technology, security, signage and commissioning.
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Build a dated move plan covering packing, removals, storage, broadband, network and AV migration, cleaning, access cards and business-continuity arrangements. Identify a cutover weekend or other downtime window, but also price the internal staff time required to prepare and settle the new office.
Model the old and new leases day by day. Synchronising handover and occupation can reduce overlap rent, rates and service charges; Carter Jonas highlights timetable coordination for this purpose. Rightmove’s commercial relocation guide recommends substantial lead time because search, negotiation, design, fit-out, procurement and IT installation all require planning.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.How should you test risk, timing and business value?
Put a simple risk register beside the cost model. For refurbishment, include unknown existing conditions, landlord approval, unavailable areas, construction noise and delayed services. For relocation, include failed searches, lease negotiation, fit-out delay, late broadband or AV, removal damage, employee commute effects and an unresolved old-lease claim. Assign an owner, probability, financial allowance and trigger to each material risk.
Compare dates as well as totals. A move may require a longer lead time but allow a clean handover; a stay project may start sooner yet extend through several disruptive phases. Tie the programme to lease notices, incentive deadlines, procurement lead times and the date staff must occupy the completed space.
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What are the most common comparison mistakes?
- Using different time horizons: comparing one year of new rent with five years of refurbishment and existing occupancy distorts the result.
- Ignoring the old lease: a move does not erase repair, reinstatement, dilapidations, notice or overlap obligations.
- Mixing scope levels: a warm-shell destination, a complete fit-out and a light refresh are not equivalent proposals.
- Omitting exclusions: published benchmarks may exclude professional fees, statutory charges, GST, escalation or agency costs.
- Assuming incentives are guaranteed: record the conditions, timing and landlord approval required before counting a contribution or rent-free period.
- Leaving disruption at zero: temporary space, remote work, downtime and internal project effort have operational and financial effects.
- Optimising for price alone: an undersized or technologically unsuitable office creates another move or retrofit sooner than planned.
- Relying on a generic rate: building condition, local labour, currency, density and specification can move the actual cost far outside a published range.
How we picked the comparison criteria
The criteria follow the cost and decision factors identified in the cited government, property and workplace guidance: lease position; required space and location; effective occupancy cost; itemized project scope; transition and operational risk; incentives; and longer-term flexibility, sustainability and workplace value. The benchmarks are shown only with their stated geography, date, currency, scope and exclusions.
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Bottom line: choose the lower total cost that still works
Refurbish when the current building and lease are fundamentally right, the scope is controllable and disruption can be managed. Relocate when a better-sized or ready-fitted space, incentives or lower ongoing occupancy cost outweigh fit-out, moving, overlap and exit liabilities. Build both cases on the same horizon, validate every lease obligation locally, and choose the least-cost scenario that meets the business brief—not the lowest construction rate.
Frequently Asked Questions
Can a landlord pay for part of an office refurbishment or move?
Sometimes. Contributions, rent-free periods and other incentives depend on the lease negotiation and their conditions, so record them separately from your own capital and confirm when they are payable. Do not count an incentive until the required approvals, scope and timing are documented.
What is the difference between a warm shell and a complete fit-out?
A warm shell is a partially prepared destination that still needs tenant work; a complete fit-out is priced to deliver the finished workplace described in the specification. The exact inclusions vary, so compare the handover schedule, services, furniture and approvals line by line rather than relying on the label.
How early should a business start an office stay-or-move decision?
Start early enough to meet lease notice and incentive deadlines while allowing time for search, negotiation, design, procurement, fit-out and IT installation. The required lead time varies by project, but postponing the decision can remove negotiating leverage and force an expensive overlap or temporary arrangement.
Who should check make-good and reinstatement obligations?
Use an appropriately qualified local property adviser to interpret the lease, inspect the premises and define the likely scope and cost. Ask for the obligation in writing and compare it with the landlord’s preferred standard before setting the relocation budget.
