How Much Does It Cost to Relocate an Office? [2025 Cost Breakdown]
Moving your business to a new location is a significant undertaking that requires careful planning and budgeting.
Whether you're expanding, downsizing, or simply seeking a better location, relocating an office is an undertaking that requires extensive planning. In this corporate relocation costs breakdown, we'll go over the various expenses you can expect when relocating your office and provide insights on how to manage these costs effectively.
Average Office Relocation Costs in Canada
We’ve calculated average costs of office relocation from multiple sources, including both moving costs and office setup/infrastructure costs.
These figures represent combined averages based on several Canadian cities. Keep in mind that actual costs will vary depending on distance and specific location.
The cost of relocating a 1,500 square foot office in Canada: Between $415,375 to $418,875.
The cost of relocating a 3,000 square foot office in Canada: Between $830,750 to $836,750.
The cost of relocating a 5,000 square foot office in Canada: Between $1,383,750 to $1,396,250.
Average Office Relocation Costs in the US
These figures represent combined averages based on several American cities, including moving costs and office infrastructure costs. Keep in mind that actual costs will vary depending on distance and specific location.
The cost of relocating a 1,500 square foot office in the United States: Between $284,500 to $288,500.
The cost of relocating a 3,000 square foot office in the United States: Between $568,500 to $577,000.
The cost of relocating a 5,000 square foot office in the United States: Between $948,000 to $960,000.
What Costs Are Involved in Relocating An Office?
There are a few different costs associated with moving an office or business as a whole. Let’s break down the areas to consider in your relocation budget.
Commercial Moving Costs
The physical moving process may account for about 20-30% of the total relocation budget.
The actual cost depends on multiple factors:
Distance of the move
Volume of items being transported
Number of specialty items (such as heavy equipment or sensitive technology)
Required labour hours
Canadian corporate moving company G&P Move estimates rates between 1$-4$ CAD per square foot. Square footage is a helpful rule of thumb to estimate costs since it can reflect approximately how many items will be moved. However, detailed estimates depend on the moving company and the factors listed above.
Infrastructure and Technology Costs
Technology and infrastructure costs often represent the largest portion of an office relocation budget, depending on your industry.
These costs may include:
Network and telecommunications setup
Server room relocation
Cable installation
Security system implementation
IT equipment reconfiguration
Even something as simple as cable installation could average around $3-$5 per square foot, according to estimates from IT provider AmorServ.
New Space Preparation
The remaining budget is typically allocated towards other build-out necessities, including:
Interior modifications and renovations
Furniture installation
Signage
Painting and flooring
HVAC modifications
JLL estimates that full build-out costs average around $196.49 per square foot.
“This figure varies across the U.S. where construction labor is tight and office development is in high demand. That’s why comparing construction costs regionally is so important to your real estate strategy. Particularly if you have offices in more than one location, or are evaluating where to expand.”
Employee Relocation Assistance
If your move requires relocating employees, this can add significant costs to your budget.
For example, according to data from a 2022 study, costs for employees in the US relocating domestically may range from $33,532 for renters to $85,466 for homeowners.
Relocation costs in Canada are comparable, but actual costs vary based on your organization’s policies, the number of employees, their roles, and the location they are moving to.
Generally, these costs include things like:
Moving expenses
Temporary housing
Home selling/buying assistance
Family transition support
Hidden Costs to Consider
When budgeting for an office relocation, don't forget to account for these often-overlooked expenses:
Lost Productivity: During the moving process, productivity will likely decrease. Be prepared to factor this into your budget and make a plan for staffing during the physical move.
Lease-Related Expenses: Early termination fees, security deposits, and double rent during transition periods.
Insurance and Legal Fees: Additional insurance coverage, legal review of new lease agreements, permits, and licenses.
Tips for Managing Relocation Costs
Corporate relocations are generally expensive and time-consuming, but even small adjustments in the planning process can save you thousands of dollars.
We’ve compiled some top tips to guide you through the process from the experts at New Roots Relocation:
Start Planning Early: Begin planning 12-18 months before your intended move date. This allows time to negotiate better rates and avoid rush fees.
Get Multiple Quotes: Obtain at least three quotes from reputable commercial moving companies and vendors.
Consider Timing: Moving during off-peak seasons or mid-month can result in better rates from moving companies.
Audit Your Assets: Use the move as an opportunity to evaluate what you really need, potentially reducing moving costs by eliminating unnecessary items.
Hire a Relocation Manager: For large organizations or moves across large distances, you may also consider consulting with a relocation expert ahead of time. While this adds to your budget, a professional relocation manager can often save money by preventing costly mistakes and negotiating better rates.
Conclusion
Remember that while office relocation represents a significant investment, it's often necessary for business growth and optimization.
However, a corporate relocation is not something to be taken lightly. We recommend detailed cost/benefit analyses, thorough planning, careful vendor selection, and professional project management to make the most of relocating your office.