How much does it cost to exit an office? Reinstatement, moving and hidden lease-end costs
Lease expiry can trigger far more cost than simply reinstating walls and floors. The budget may include removal of tenant systems, repairs, moving, IT relocation, double rent, service charges, handover documentation and the risk of deductions from the deposit or guarantee. The Ecoffices Model structures these obligations into three scenarios: Eco Release, Eco Transition and Eco Exit.
Office exit cost is the missing layer in the total cost of a lease decision
Companies often analyse relocation through rent, service charges, the cost of preparing the new office and any landlord contribution. That is still not the full picture. If the existing lease requires reinstatement, settlement of improvements, strip-out, removal of tenant systems or other tenant obligations, the decision to take a new office also triggers exit cost.
The Ecoffices Model treats exit cost as a separate layer of total lease cost. It is not a minor technical note at the end of the budget. For larger offices it can mean hundreds of thousands or more than PLN 1m of additional cash requirement during the same period in which the company is funding the new office. Model values structure the scenarios, but do not replace lease review, survey and pricing of the actual scope.
- design and budget of the new office,
- office preparation, FF&E, AV and IT,
- programme, approvals and handover.
- reinstatement,
- strip-out, settlements and lease-end obligations,
- contractual and organisational risk.
- investment in the new office,
- cost of closing the old office,
- overlapping expenditure within one time horizon.
Relocation should be calculated as a two-sided decision: entry into the new office plus exit from the current premises. Only then does management see the true cash requirement of the change.
Reinstatement is only one part of the lease-end budget
The scope of obligations is driven mainly by the lease, technical appendices, handover records and agreements with the landlord. The same floor area can therefore produce a very different exit cost. The full budget should include not only construction works, but also logistics, the transition period, documentation and financial risk associated with handover.
Reinstatement and strip-out
Walls, ceilings, flooring, joinery, signage, tenant systems, cabling and technical elements.
Repairs and handover
Floors, doors, sanitary areas, common parts, making good after strip-out, testing, balancing and as-built documentation.
Move and IT
Transport of furniture and documents, relocation of server room, networks, equipment and archives, and operational readiness of the new office.
Lease overlap
Double rent, service charges, utilities, security and the cost of operating two premises during the transition period.
Landlord settlement
Full reinstatement, agreed retention of selected elements or a financial settlement instead of carrying out part of the works.
Financial risk
Deductions from deposit or guarantee, delay claims, additional works after inspection and the cost of an extended handback period.
The tenant completes the scope required by the lease and hands the premises back in the agreed condition.
The landlord accepts selected walls, systems, joinery or FF&E remaining in place.
The parties agree a financial amount instead of carrying out part or all of the reinstatement works.
Office exit cost should be assessed together with office relocation or refurbishment analysis, the fit-out and move programme and building-management requirements.
Eco Release, Eco Transition and Eco Exit — three office exit-cost scenarios
Ecoffices structures office exit cost into three scenarios: Eco Release, Eco Transition and Eco ExitThese are not ‘cheap, medium and expensive’ levels, but three scenarios for closing the current premises: from controlled completion of basic tenant obligations, through a broader strip-out and transition settlement, to a complex exit process with high technical, contractual and organisational risk.
For a 1,000 m² office, this corresponds to approximately PLN 576k, PLN 787k or PLN 1.03mThese amounts can materially change the decision to stay and refurbish, renegotiate or relocate.
Basic office-closeout scenario: controlled reinstatement scope, core settlements and lower technical risk.
Transition scenario: broader settlement of tenant obligations, strip-out, elements to remain and coordination between premises.
Full exit scenario: a complex handback process with high technical, contractual, MEP and organisational risk.
The biggest relocation challenge is the cash peak, not the total cost alone
During relocation, several costs arise at the same time. A company may simultaneously fund the new-office design, deposits, FF&E, moving, transition periods, double operating costs and settlement of the old premises. Ecoffices refers to this point as the peak cash requirement.
For a 1,000 m² office, a cost-controlled entry scenario of approximately PLN 3.47m plus Eco Release exit cost of approximately PLN 576k produces about PLN 4.04m of decision-related cash requirement. Under Eco Transition this rises to approximately PLN 6.43mand under Eco Exit to approximately PLN 9.65m.
Office exit cost can equal 12–17% of the cost of preparing the new office
As a percentage of entry cost, exit cost may not look dramatic. In cash terms, however, it is very real. For larger offices, an additional low-teens percentage can determine whether relocation is financially rational or requires landlord negotiation, phasing or a scope change.
| Scenario | Exit cost | For 1,000 m² | Exit / entry ratio | Decision risk |
|---|---|---|---|---|
| Eco Release | PLN 576/m² | PLN 576k | 16.6% of the cost-controlled scenario | omitting basic reinstatement obligations |
| Eco Transition | PLN 787/m² | PLN 787k | 13.9% of the business scenario | underestimating strip-out, settlements and technical coordination |
| Eco Exit | PLN 1,032/m² | PLN 1.03m | 12.0% of the representative scenario | late identification of reinstatement, lease and MEP costs |
The largest exit cost is often written into the lease, not the cost plan
In many relocation decisions, exit cost appears too late because it is hidden in lease clauses, technical appendices, handover records and reinstatement obligations. If these are not checked before deciding to relocate, the company may approve the new-office budget without seeing the cost of closing the old office.
- reinstatement obligation,
- strip-out scope,
- handover record and original condition.
- reinstatement scope,
- retention of valuable elements,
- settlement of improvements with the landlord.
- works identified after the decision,
- short strip-out period,
- simultaneous funding of the old and new office.
Office exit cost can reverse a relocation decision
Relocation may look attractive when only rent and new-office preparation cost are compared. The result can change once reinstatement of the old premises, moving, the transition period, delay risk and sunk investment in the current office are included.
Ecoffices therefore analyses three scenarios in parallel: stay and refurbish, relocate to a new office, and renegotiate with refurbishment. Exit cost is one of the factors that can shift the decision from ‘relocate’ to ‘stay and refurbish’.
- the new office genuinely improves function and total cost,
- exit cost is calculated before the decision,
- the programme limits the cash peak.
- exit cost is high,
- the current space passes the capacity test,
- renegotiation helps fund part of the changes.
How does Ecoffices calculate the Office Exit Cost Index?
The Ecoffices Office Exit Cost Index structures the assessment of tenant obligations. It is not a market index, price list or construction offer. The values of PLN 576, PLN 787 and PLN 1,032/m² are model levels assigned to Eco Release, Eco Transition and Eco Exit. Actual cost depends on lease terms, condition of the premises, MEP scope, timing and agreements with the landlord.
The model combines reinstatement cost, strip-out, contractual obligations, technical risk, the ratio to entry cost and the peak-cash effect. Its purpose is to ensure management compares the real cost of the office decision rather than rent alone.
- reinstatement, strip-out and settlements,
- technical and contractual risk,
- cost of closing the current office.
- design and preparation of the new space,
- FF&E, AV, IT and logistics,
- programme and handover.
- overlapping costs over time,
- highest cash-load point,
- impact on the management decision.
The values in this report are comparative and intended for scenario assessment. They are not a construction offer or a quotation for a specific office. They support early-stage decision analysis and discussion of relocation risk.
A tenant should not ask only what the new office costs. The better question is what the office change costs
Office exit cost is one of the most frequently overlooked elements of a lease decision. In small projects it may be an inconvenient extra. In larger projects it can become a separate budget item worth hundreds of thousands or more than PLN 1m. If calculated too late, it can surprise management after the relocation decision has already been made.
In the Ecoffices Model, relocation, refurbishment and renegotiation are compared through total decision cost. Only by combining entry cost, exit cost, lease cost, workplace capacity, programme and risk can a company determine whether to stay, relocate, reduce floor area or rebuild the current office. If exit costs are high, consider refurbishment of the existing office.
Calculate exit cost, office preparation, total lease cost and workplace capacity
The report explains the logic of office exit cost. Ecoffices calculators translate it into a decision: stay, refurbish or relocate.
Office Lease TCO Calculator
Compare staying, refurbishing and relocating, including entry cost, exit cost, the transition period and peak cash requirement.
Office Fit-Out Cost Calculator
Estimate the cost of preparing the new office and see how scope, specification, workplace programme and landlord contribution affect CAPEX.
Office Test-Fit & Workplace Capacity Calculator
Check whether the current or new space can accommodate the team, rooms, booths, support functions and working model.
Office fit-out and refurbishment
See how Ecoffices manages analysis, budgeting, design, coordination and turnkey office delivery.
Office Carbon Footprint Calculator
See how refurbishment, asset retention and material decisions affect the office carbon footprint.
Frequently asked questions about office exit cost
What is office exit cost?
It is the cost of leaving the current premises, including reinstatement, strip-out, settlements, contractual and organisational risk and the potential peak cash requirement during relocation.
Should office exit cost be calculated together with the cost of preparing the new office?
Yes. A relocation decision has both entry cost and exit cost. Analysing only the new office can understate the real cost of changing office.
How much can office exit cost be?
In the Ecoffices Model, office exit cost can be analysed indicatively in three scenarios: Eco Release at approximately PLN 576/m², Eco Transition at approximately PLN 787/m² and Eco Exit at approximately PLN 1,032/m².
What does peak cash requirement mean?
It is the point at which the cost of entering the new office and the cost of exiting the current premises overlap.
How does Ecoffices use this indicator?
Ecoffices combines exit cost with office-preparation cost, total lease cost, relocation programme, contractual risk and workplace capacity to show the real cost of the decision: stay, refurbish or relocate.