Insights / Decommissioning / San Francisco
RESEAT / Insights / Decommissioning

Keeping half the office: how to decommission a downsize instead of a shutdown

A downsize is harder than a shutdown. You have to decide what stays, and most companies decide it in the wrong order.

Decommissioning
In short

A downsize is usually a better lot than a full closure, because you keep the worn pieces and release the good ones, which is exactly what a buyer wants. Decide what stays before you inventory what goes, since sorting on paper is free and sorting on the dock is not, and run the reconfiguration of what stays as part of the same project rather than as a second mobilization.

Full shutdowns are simple. Everything goes. The hard version is the one most Bay Area companies are actually running: renew on two floors instead of four, keep the good stuff, clear the rest, and do not spend money re-buying anything.

That sounds like less work than a full decommission. It is more, because every piece now needs a decision instead of a truck.

The mistake is deciding by floor

The instinct is to keep whatever is on the floors you are staying on and clear whatever is on the floors you are leaving. It is fast, it is tidy, and it is almost always wrong. The best inventory in the building is rarely distributed to match the lease.

Decide by asset, then move. Yes, that means relocating furniture inside your own building. It also means you stop paying to remove a two-year-old benching run on five while buying a new one for three.

Four buckets, in this order

Sequence it against the space you are keeping

  1. Set the standard before you sort Pick the task chair, the desk family, and the finish you want the smaller office to be built on. Every keep decision falls out of that one page.
  2. Inventory the whole footprint, not the exit floors You cannot pick the best of the building if you only counted half of it.
  3. Relocate before you clear Move the keepers into the surviving floors first. What is left is now a clean lot, which sells better and quotes cheaper than a picked-over one.
  4. Sell the remainder as one lot Buyers pay more for a coherent quantity than for a mixed pile. Every piece you pull after listing weakens the lot.
  5. Book the freight elevator for both jobs Internal moves and external removal both need the dock. In a downtown San Francisco tower that is one calendar, and it fills up.

The storage math

Storage feels like the safe choice and usually is not. Run the number before you commit: monthly rate, times the months until the furniture is actually needed, plus the two handling charges in and out. Compare that against selling now and buying second life later.

For most categories the second number wins, because the market you would sell into is the same market you would buy back from. Task seating is the exception worth arguing about, because good chairs are the one thing you never want to be short of.

CategoryKeep, store, or sellReasoning
Task seatingKeep, store if neededHighest value per square foot of storage, hardest to replace well in a hurry
Benching and desksKeep the best family, sell the restMatching matters more than quantity
Panel systemsSell as a lotStorage cost per dollar of value is the worst in the building
Filing and storageDonate or sellLow resale value, high weight, low regret
Lounge and soft seatingKeep and reupholsterA refresh costs less than replacement and reads as new

What the smaller office should feel like

Downsizes get a reputation internally before anybody sees the space. The fastest way to change that is to make the surviving floors visibly better than the ones that closed. That is affordable, because you are choosing from four floors of inventory to furnish two, and topping up with second life instead of new.

Running one of these? Start with the decommission intake and tell us the surviving footprint, not just the exit. If the new standard is still open, the design brief is the other half of the same conversation.

Questions we get asked

Yes, and it is usually cheaper than doing them separately. The same crew and the same freight window cover the internal relocation and the outbound lot.

Only against a headcount plan with a real date. Storage plus two handling charges frequently exceeds what it would cost to buy the same product second life when you actually need it.

Yes. Coherent lots of good product move at almost any size. What hurts a lot is being mixed and incomplete, not being small.

Earlier than a full exit, not later. The keep decisions take time and every one of them changes the size of the lot you are selling.

Keep reading

Clearing a space this year?

Tell us what you have or what you need. We come back with a plan, a number, and the impact math to go with it.

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