Management of Office Decommissioning Due to Covid-19

Management of Office Decommissioning Due to Covid-19Many companies are considering office decommissioning strategies and many of us are questioning whether the office landscape will ever be the same again. For some companies it no longer makes sense to keep an enormous commercial footprint when you now only need a fraction of the space. Unfortunately, there are big price tags associated with commercial leases.

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If you think it’s time to reduce your office footprint or close your office then you need the right company to decommission your office space. Neglecting to properly decommission your office space can leave you exposed to unnecessary costs. The majority of commercial leases contain very specific requirements as to how your space needs to be turned back over to the landlord. If not, it’s your deposit that hangs in the balance. The removal of unwanted furniture and equipment can be an expensive undertaking, especially if not handled properly, and your landlord is well within his rights to apply your deposit to those costs.

Most commercial leases require that the occupied space be left in ‘broom swept’ condition. This means that all contents, freestanding furniture, workstations, office/IT equipment, cabling, etc., must be completely removed, and all floors left cleared of debris and vacuumed. Overall, you need to return the space back to its original condition prior to your occupancy. Your lease should spell out the specific requirements and standards you will be held to.

The easiest way to satisfy your lease obligations and get your deposit back is to consult a professional who is well-versed in handling the office decommissioning process. Most standard moving companies aren’t experienced enough to guide you through this process, and handling it yourself elevates your exposure.

When you value the assets you no longer need, factor in the time it takes to liquidate them. It’s often best to hire an expert to advocate for your bottom line, and help you sort it all out in an efficient and expeditious manner. There are three outcomes in an office decommissioning: net positive, net zero, and net negative.

To achieve “net positive,” the liquidation of furniture and/or equipment yields a positive cash return and is clearly the optimal outcome to strive for. To attain “net zero,” you can choose to donate contents to a local charity for re-purpose, or have a third-party company remove them at no cost. While you don’t make any money on the transaction, you save the potential cost of having to remove the contents yourself.

For those items that simply don’t have much or any value, and need to either be recycled or disposed, you’ll find yourself in a “net negative” position. Although there’s a nominal return for recycled items, the cost for disposing valueless items leaves you with a fee that an office decommissioning expert can help minimize.

There is an enormous difference between a transition management expert and a standard moving company. Before you sign on the dotted line, make sure the decommissioning services that an expert provides are in alignment with your lease obligations, so that your landlord can return your security deposit in full!

About Argosy Management Group, LLC:

argosyArgosy Management Group (AMG) is a leader in office relocation and logistics project/move management. AMG services companies throughout the U.S. and worldwide. AMG delivers a wide range of comprehensive services: move management and transition planning, space planning and furniture needs, office and industrial relocation and liquidation, storage solutions and asset management, furniture disassembly and installation, and I.T./data center relocation. AMG also offers disinfection services for your office space to combat COVID-19 and other viruses.
For more information, contact: Shawn O’Neil at 609-744-4112 or visit