The ROI of a Relocation: When Moving Makes More Financial Sense Than Renewing
By Chris Rohrer, Broker & Pete Kostroski, Broker | Rokos Advisors
Relocating a business is rarely simple, but in today’s market, it can be surprisingly strategic. With vacancy levels rising across select Twin Cities submarkets and landlords competing harder for quality tenants, relocation can sometimes deliver meaningful financial and operational returns—if approached with the right lens. The challenge lies in knowing when a move truly creates value and when it’s better to stay put.
When Staying Costs More Than Moving
Lease renewals often feel like the safe choice. Staying eliminates the cost and disruption of moving, and there’s comfort in familiarity. But the “path of least resistance” isn’t always the most cost-effective one. A renewal that locks you into above-market rent, rising operating expenses, or an inefficient layout can quietly erode savings over time.
Meanwhile, a relocation can offer more than just a change of scenery. Tenants who take the time to analyze options are finding opportunities to secure lower total occupancy costs, right-size their footprint, and improve access for both employees and clients. The right question isn’t “Can we afford to move?”—it’s “Can we afford not to?”
Where the Real ROI Comes From
Evaluating the return on relocation requires a full view of your occupancy costs. Base rent alone doesn’t tell the story. Smart tenants compare total costs—including rent, OpEx, taxes, parking, and energy efficiency—against their current lease. In many cases, newer buildings with improved layouts or energy systems deliver a lower all-in cost, even if the base rent is higher.
But the ROI isn’t purely financial. A relocation can improve productivity, employee retention, and brand perception. And in today’s market, landlords are highly motivated to fill quality vacancies—offering tenant improvement dollars, free rent, and more flexible lease terms that can dramatically shift the math in a tenant’s favor. For companies nearing renewal, simply exploring relocation options can create powerful leverage with their existing landlord and drive better renewal outcomes.
Making the Right Decision
Relocation isn’t always the right move. If your space still aligns with your workforce, supports your operations, and your landlord is willing to negotiate fair renewal terms, staying may deliver equal or greater value with less disruption. The key is validating that decision with data, not assumptions. Benchmark comparable properties, analyze total cost of occupancy, and quantify what a relocation would achieve for your business over the next lease term.
At its core, the ROI of relocation comes down to one question: does moving position your business to operate more efficiently and profitably? When viewed through that lens, relocation isn’t just about new space—it’s about long-term performance and strategy.
Is your lease renewal approaching? Connect with Rokos Advisors to evaluate your current space strategy and whether a renewal or relocation is the right move for you.
Rokos Advisors is an award-winning Minneapolis - St. Paul based commercial real estate/tenant representation firm specializing in helping businesses find the perfect office or industrial space for their company.