THE dilemma of whether to move location or refurbish existing premises is more keenly felt in a recession when belt tightening often outweighs other considerations.

We have found clients behave differently depending on the sector in which they operate.

Many industrial firms have been more inclined to renegotiate their existing terms and stay where they are – considering the huge cost and upheaval of moving a manufacturing, logistics or warehousing facility – whereas retail and office-based clients often favour re-locating.

They are more able to make the most of competitive rents and take new space which has already been upgraded and is ready to move into.Š

Overall, we’re still seeing a healthy mix of both scenarios.

Which option is right for your business can depend on the state of your current premises and your lease agreements. Staying put at least saves on removal costs and professional fees.

Although disruptive in the short term, refurb is often less complex and demands less management downtime for planning and implementation.

It may provide an opportunity for a reconfiguration of the existing space and even the potential to generate income from releasing spare floor area and sub letting, especially for those who downsized during the recession.

Moving, on the other hand, offers the chance to start afresh, relocating closer to transport links or customers, and ensuring the space you take is appropriate for your firm’s current needs, rather than those that drove the original choice.

In the current climate, tenants are in a strong position and there are deals to be done with rental incentives from landlords which could offset the cost of additional building or fit out works.

Not only does this freedom provide greater flexibility in layout, all the work can be carried out with no disruption to staff or the business.

However, moving is undoubtedly the pricier option once legal fees, construction, moving costs, new furniture, equipment etc, are taken into consideration.

There will also be dilapidation costs incurred from the original location which will have to be factored into the investment.

Either way, fresh, modern facilities could be the differentiator your business needs in 2011. It can be great for staff morale and impress your clients.