Office Lease TCO Cost Calculator

Stay and refurbish, or relocate to a new office? This tool brings together three layers of decision-making: it benchmarks relocation costs against upgrading your existing space, breaks down lease offers into comparable components, and highlights potential “red flags” that can disrupt your timeline even after agreements are signed.

As a Design & Build expert, we provide a proprietary decision engine built on real project data. Use our calculators to accurately estimate your CAPEX, validate the true Total Cost of Occupancy (TCO), and identify technical and contractual risks before they impact your investment.

Ecoffices proprietary decision engine

Stay or relocate — and if you relocate, which offer should you choose?

This module combines three decision layers. First, it compares the scenario of staying in your current office against relocation, then breaks lease offers down into comparable components, and finally highlights legal and technical red flags that can derail your budget or timeline after the documents have already been signed.

Layer 1 Stay or relocate

The system compares the cost of refurbishing your current office against a full relocation, including reinstatement, logistics, time, rent overlap, and the cost of temporary solutions.

Layer 2 Heuristic decision risk index

At the end, you receive a recommendation together with a decision risk index. This is a supporting heuristic, not an objective credit-style rating.

Layer 3 Net present value

The scenarios are modelled on real cash flow over time, with entry costs distributed more realistically than under a simple flat monthly allocation.

Most common mistake Looking only at base rent Relocation may appear attractive at the headline rent level, but not when the full cost of the decision is taken into account.
Most often overlooked Reinstatement, timing, overlap, and service charges Exit costs, programme timing, and the real cost of entry are usually what distort the evaluation of the options.
What comes next Offer validation and risk review If relocation makes sense, the second and third modules help validate offers and red flags before taking the case to the board.

Scenario analysis inputs

This is an indicative model. Its purpose is to structure the investment decision and capture items that are usually missed at the early stage.

The mode below changes only the interpretation of the recommendation, not the financial model itself or the NPV calculation.

Current office and existing lease
Scenario: stay and refurbish
Scenario: relocation
Additional assumptions
System recommendation
Preliminary analysis

Please enter your inputs and run the comparison

The result will show whether refurbishing the current office or relocating to a new space is the more rational economic decision.

Heuristic decision risk index --/100
No result
Scenario A
Stay and refurbish
0 EUR
Net present value: 0 EUR
Average monthly cost0 EUR
Entry cost0 EUR
Peak cash need0 EUR
Cash out 12 months0 EUR
Implementation time0 weeks
Cost per employee0 EUR
Scenario B
Relocation
0 EUR
Net present value: 0 EUR
Average monthly cost0 EUR
Transition cost0 EUR
Peak cash need0 EUR
Cash out 12 months0 EUR
Implementation time0 weeks
Cost per employee0 EUR
Cost waterfall
Structure of both scenarios
Stay
0 EUR
Relocate
0 EUR
Difference in net present value
0 EUR

The system will show the difference between the scenarios after discounting entry costs, exit costs, rent, and risk.

Key risks and model observations
Complete the inputs to display the risk list.
Why this module matters Lease offer analysis

This is not a simple rent comparison. The tool calculates the true cost of entry after taking into account landlord contribution, rent-free months, fit-out top-up, service charges, incoming standard, and the cost of time.

What it exposes The cheapest offer on paper is not always the best offer in practice

Once we add tenant-side fit-out budget, service charges, additional operating costs, incoming standard, and the cost of time, the ranking of offers can change completely.

Validates 3 offers side by side The comparison runs across three parallel scenarios from brokers or building owners.
Calculates Net present value and nominal cost It combines base rent, service charge, landlord contribution, tenant fit-out top-up, additional costs, and the cost of time beyond the assumed entry benchmark.
Outputs Offer ranking At the end, you can see which offer really performs best after full financial modelling.

Shared assumptions for all offers

First, we define a consistent comparison framework. This ensures the ranking is driven by actual differences between offers, not by inconsistent input data.

The cost of time is applied only to weeks beyond the acceptable entry benchmark, not to the entire programme.

Offer A
Scenario 1
Offer B
Scenario 2
Offer C
Scenario 3
Best offer after full calculation
Offer --

Run the offer comparison

The system will show which offer provides the best overall balance after taking into account base rent, service charges, landlord contribution, rent-free months, tenant fit-out top-up, additional costs, incoming standard adjustment, and NPV.

Findings and red flags
Run the comparison to view the list of findings.
Why this module matters Legal and technical red flags

This layer captures the risks that do not show up in a spreadsheet alone: problematic lease clauses, building constraints, missing technical confirmations, and gaps in the delivery standard.

What it gives you A board-level argument and a filter for offers

Even a financially attractive offer may still be the wrong decision if the lease contains blockers or the building cannot support the programme, power, ventilation, or logistics you need.

Scoring 0–100 risk points The higher the score, the greater the probability that the offer requires a proper audit before moving forward.
Separates risks into Legal, technical, and contextual The result does not lump everything together — it shows where the biggest issue sits.
Outputs Recommended next steps At the end, the system suggests actions such as lease audit, technical due diligence, test fit, or clarification of the delivery standard.

Red flag assessment

Tick the constraints that apply to the offer, building, or process being analysed. The module will calculate an overall risk score and indicate the priority actions.

Initial assessment
Legal red flags
Technical red flags
Risk analysis result
No result

Select constraints and red flags

The module will show whether the offer or building requires a full legal and technical audit before any further decision is made.

Total risk score --/100
No result
Risk breakdown
Legal risks 0/100
Technical risks 0/100
Contextual risks 0/100
Strongest blockers
Select red flags to display the list of key blockers.
Recommended next steps
After calculation, the module will indicate recommended actions for the management, legal, and technical teams.
Related Ecoffices calculators

A TCO result is only as strong as the area assumptions and entry cost behind it

The Total Cost of Occupancy calculator shows the full cost of the decision over time, but its output depends on whether the office area has been matched correctly to the team and what the real cost of preparing the space will be. That is why it is worth validating both the test fit and the fit-out budget as well.

Together, these three calculators create the Ecoffices decision framework: space requirement → investment cost → occupancy cost.

Office scenario analysis

Total cost of office lease, modernisation and relocation — how to properly assess the decision to stay or move

In business practice, the question “stay or move?” is almost never only a question about rent. It is a question about the total cost of the decision, its impact on the organisation, schedule, cash flow, quality of work, legal risk and technical feasibility. That is why a professional office analysis should not be limited to a simple comparison of rates per square metre. It should include the full cost of office lease, meaning the full cost of using and changing the space, as well as the discounted scenario cost, entry cost, exit cost, operating costs, landlord contribution, rent-free period, service charges, make-good cost, maximum cash peak, delays, temporary solutions, handover standard, lease flexibility and real red flags that may overturn the project after the management decision has already been made.

Look beyond rent
An office decision is the sum of cost, time, risk and technical feasibility.
Compare scenarios
Not only addresses and rates, but full business variants: stay, modernise, relocate.
Include cash flows
Discounted scenario cost, maximum cash peak and cash outflow in the first months often change the final verdict.
Model results from the Ecoffices Full Cost of Decision Engine

How does the total cost of decision change for offices from 245 to 2260 m²?

The data below shows six sample office decision scenarios calculated according to the full cost of decision logic: rent, service charges, entry cost, landlord contribution, rent-free period, exit costs, lease overlap, cash outflow in the first 12 months, maximum cash peak, discounted scenario cost and implementation risk. These are not offer data, but model scenarios showing why the rent rate alone is not enough to make a decision.

Area range 245–2260 m² from a small office to a large headquarters
Lowest discounted cost loading… small office without major modernisation
Largest 12-month cash outflow loading… representative headquarters scenario
Largest discounted cost loading… large optimised relocation
Methodological assumption: scenarios cover a 60-month horizon, 9% annual discount rate, net costs, indicative market values and model lease parameters. Results are for comparing decision logic only and do not constitute a binding offer. EUR values are converted automatically using the latest available NBP EUR/PLN mid-rate.
Model full-cost decision scenarios for offices of 245, 530, 1000, 1350, 1600 and 2260 m²
Scenario Decision Area Team Term Rent Service charges Entry / modernisation cost Landlord contribution Rent-free period Lease overlap Make-good cost Relocation / logistics 12-month cash outflow Max. cash peak Nominal 60-month cost Discounted scenario cost Disc. cost / m² / month Disc. cost / workstation / month Risk score Main driver Management conclusion
Interactive Ecoffices comparison module

Comparison of full-cost decision scenarios

Select a scenario to see the cost structure: rent and service charges, entry cost after landlord contribution, exit and logistics costs, cash outflow in the first year, maximum cash peak and discounted scenario cost.

Nominal cost structure over a 60-month horizon

The chart shows the share of lease cost, entry cost after landlord contribution and transition costs.

Lease Entry cost Exit / overlap
Area
Team
Rent + charges
Landlord contribution
12-month cash outflow
Risk score
Analytical conclusion
Select a scenario to see the conclusion.
Biggest trap
low rent ≠ lowest decision cost

The 1350 m² scenario shows that lower base rent can lose against larger area, weaker landlord contribution and higher entry costs.

Most important CFO metric
cash peak + 12-month outflow

Discounted cost shows the economics over time, but cash peak shows whether the organisation can carry the scenario in the first phase of the project.

Best scale effect
2260 m²: loading…

A large project may have a high nominal cost, but with efficient area, landlord package and risk control, the result per workstation can be competitive.

Conclusion from model data
In full-cost decision analysis, neither the lowest rent nor the largest incentive package wins automatically. The winning scenario is the one with the best relationship between discounted cost, entry cost, cash outflow in the first months, technical risk, handover standard and the real function of the office.

Frequently Asked Questions (FAQ)

What exactly does the Ecoffices office TCO calculator compare?

The Ecoffices calculator compares two primary scenarios: staying and modernising the current office versus relocating to a new workplace.

  • current base rent and service charge,
  • the remaining term of the current lease and the commercial terms after renewal,
  • the cost of modernisation or the cost of entry into a new office,
  • landlord contribution, rent-free months and service charge,
  • make-good, relocation logistics, lease overlap and delays,
  • NPV, peak cash, first-12-month cash outflow and a heuristic decision risk index.

This is not a simple rent-per-sqm calculator. It is an Ecoffices decision model designed to show which option is more rational economically and operationally.

Does a lower base rent automatically mean a better lease offer?

No. A lower base rent does not automatically mean a lower office TCO.

In the Ecoffices methodology, the real attractiveness of an offer depends on the combined effect of:

  • base rent,
  • service charge,
  • rent-free months,
  • landlord contribution and how it is recovered,
  • handover standard of the space,
  • tenant-side fit-out cost,
  • time to occupy,
  • make-good and the cost of leaving the previous office.

It is common for an offer with a higher headline rent to perform better after full modelling, because it comes with a stronger landlord package, a shorter programme and a lower real entry cost.

What is actually included in office TCO?

Office TCO means the total cost of the decision, not just rent.

  • base rent and service charge,
  • indexation over time,
  • the cost of modernising the current office or fitting out the new one,
  • landlord contribution, free rent and additional costs,
  • make-good and early lease exit costs,
  • relocation logistics,
  • lease overlap and temporary workplace solutions,
  • contingency, risk and the cost of time.

That is exactly why an Ecoffices TCO analysis is more useful for board-level decision-making than a simple comparison of rental rates.

Why does the model need to include the remaining term of the current lease?

Because the “stay” scenario cannot be modelled as if the current rent applied throughout the full analysis horizon.

If the current lease ends in 8, 10 or 12 months, the tenant will usually move into a new rent level, revised commercial terms or a fresh negotiation with the landlord. That means staying in the office is also a time-sensitive scenario.

A proper Ecoffices analysis therefore separates:

  • the remaining term of the current lease,
  • the terms after renewal or renegotiation,
  • any rent-free package on renewal.
What does make-good mean, and why does it so often distort the economics of relocation?

Make-good is the cost of reinstating the old premises to the condition required at handback to the landlord.

  • removal of fit-out elements and built-in features,
  • reinstatement of layout or technical standard,
  • repairs to finishes, services and surface condition,
  • and sometimes a lump-sum settlement required by the lease.

In practice, this is one of the most frequently overlooked relocation costs. A new-building offer may look attractive, but once make-good is added, the economic advantage can shrink materially.

How does landlord contribution work, and why does it not always reduce peak cash?

Landlord contribution improves entry economics, but it does not always act like immediate cash in hand.

From the tenant’s perspective, three things matter:

  • the amount of landlord contribution,
  • when it is actually recovered,
  • and what percentage of the fit-out cost can realistically be captured through it.

In practice, landlord contribution may be settled:

  • upfront,
  • as reimbursement against invoices,
  • or after practical completion.

That is why an offer with a strong landlord contribution may still look good in NPV, while generating high peak cash on the tenant side in the first months.

What do rent-free months actually do, and do they always improve an offer?

Free rent improves entry economics, but it does not replace a full TCO review.

Rent-free months matter because they reduce the early-stage burden of the lease. That does not automatically mean that an offer with more free rent is the better one.

  • free rent does not always compensate for a weak landlord package,
  • it does not replace a strong handover standard,
  • it does not neutralise a high service charge,
  • and it does not solve the problem of a high tenant-side entry cost.
Why does NPV matter in an office decision?

NPV allows scenarios to be compared with the timing of cost taken into account.

The same amount spent today and the same amount spent in two or three years do not have the same economic weight. That is why a professional analysis should not stop at nominal cost.

  • large upfront CAPEX,
  • monthly lease cost,
  • landlord contribution recovered over time,
  • make-good and exit costs,
  • lease overlap and delay-related costs.

All of this should be treated as cash flow over time. That is exactly what NPV is for, and why it is built into the Ecoffices decision framework.

What do peak cash and first-12-month cash outflow actually mean?

These are two practical indicators showing the real financial burden of the project.

  • Peak cash — the highest monthly cash exposure created by a given scenario.
  • Cash outflow in the first 12 months — the total outflow of funds in the first year after the project starts.

Two options may have similar NPV or nominal cost, while being completely different in terms of how much cash must be committed at the start. For a CFO or board, this is often just as important as the total cost itself.

How long does office relocation take, including fit-out?

In practice, the right view is the full chain: design, approvals, delivery and move-in to the completed office.

  • briefing and programme definition,
  • design and multi-disciplinary coordination,
  • building approvals, landlord approvals and fire / BMS reviews,
  • fit-out delivery and procurement,
  • handover and move-in.

The timeline depends on the handover standard of the space, office size, programme complexity and building procedures. The more approvals and changes along the way, the higher the risk of delay.

Can an office be modernised while the company is still operating inside it?

Yes, but modernisation delivered in a live office has its own cost and its own risks.

  • works usually need to be phased,
  • part of the works may have to be done after hours,
  • the programme duration usually becomes longer,
  • there may be restrictions in day-to-day use of the office,
  • and in some cases a swing space or another temporary solution is required.

That is why staying and modernising should never be treated as a “no-cost” option. In the Ecoffices approach, it is a full investment scenario that should be modelled just as rigorously as relocation.

What documents are needed for a reliable lease and fit-out analysis?

The better the input data, the lower the risk of error in TCO and programme modelling.

  • lease terms and a draft lease or heads of terms,
  • information on the remaining term of the current lease,
  • rent, service charge and indexation rules,
  • handover standard of the space,
  • landlord fit-out guidelines,
  • technical data: power, HVAC, fire strategy, BMS, building logistics,
  • drawings, guidelines and building constraints,
  • appendices covering make-good and handback conditions.
Which legal and technical red flags should most often stop the decision?

The most dangerous risks are the ones not yet priced, but highly capable of changing the budget or the programme.

On the legal side:

  • restrictive make-good,
  • no sublease or assignment rights,
  • weak flexibility clauses,
  • aggressive indexation,
  • unclear after-hours cost provisions.

On the technical side:

  • unconfirmed electrical capacity,
  • limited after-hours ventilation,
  • delivery and lift logistics issues,
  • service and installation constraints,
  • a mismatch between the user programme and the building’s actual capability.
Should furniture, AV and IT be part of office TCO analysis?

Yes — if the goal is to show the real budget of the decision, not only the bare construction cost.

  • workstations and executive furniture,
  • meeting rooms and phone booths,
  • reception, kitchen and built-in joinery,
  • AV, Wi-Fi, room equipment and user infrastructure.

In many organisations, these elements are exactly what create the gap between an initial fit-out estimate and the real investment budget.

When does relocation still make sense despite a higher base rent?

When the full commercial and operational balance is better than the rent headline alone suggests.

Relocation may still be the stronger option despite a higher rent if:

  • the landlord package for fit-out is stronger,
  • the handover standard of the space is better,
  • time to occupy is shorter,
  • service charge is more rational,
  • the office supports the user programme better and reduces future change requirements,
  • and the full picture performs better in NPV, peak cash and delivery risk.

That is exactly why lease offers should be benchmarked through a TCO framework according to the Ecoffices model, not through base rent alone.

JAK MOŻEMY
CI POMÓC?

Jesteśmy partnerem w projektowaniu i realizacji fit-out biur. Wspieramy inwestorów na każdym etapie procesu – od koncepcji, przez projekt, aż po sprawną realizację przestrzeni biurowych dopasowanych do realnych potrzeb organizacji.