Moving Out and Decommissioning: Challenges and Opportunities
As companies continue to embrace remote work and office vacancies increase, the process of decommissioning offices has become more important. Decommissioning teams are tasked with clearing out furniture, fixtures, and equipment, which can be a costly and time-consuming process. Office vacancy rates in the US reached a record high of 16.4% in Q2 2023, with the amount of sublease space available also rising. Tenants often underestimate the cost of removing equipment when moving out, and the expense is rarely factored into the lease. The decommissioning process involves dismantling outdated systems, removing abandoned vaults, and even taking down staircases and fully equipped kitchens. The cost of removal can be offset if tenants are able to sell furniture or fixtures in the secondary market.