Decommissioning: Save a little, Lose a Lot

Written by Joe Mannino, Jr, guest blogger for the Business Relocation Resource Center.


When companies upgrade or relocate to a new space, it’s always a fight against time to complete everything before the “drop-dead” lease termination date. Failure to meet this time frame will result in exorbitant holdover fees and potential storage and/or removal costs that are assessed for not planning efficiently. Moreover, this doesn’t include legal fees and holds on tenant security deposits if the space is not exactly how the landlord expects it to be.

Tenant reps and savvy real estate managers understand the importance of hiring a decommissioning company with sufficient resources to tackle these projects in a timely and professional manner. This helps to preserve the landlord/tenant relationship and ultimately cut the cord amicably without having to go to court.

Landlords don’t like to lose tenants, which often causes the period of time when the tenant is vacating to be tense and stressful for all parties involved.

Stop yourself from taking a “haircut” on your deposit and retain a company that can decommission your space in a timely manner that conforms to landlord requirements.

Real estate professionals and facility managers representing tenants often look to micromanage a decommissioning by trying to recover money through the sale of assets (the Craigslist strategy) and by donating surplus and obsolete furniture, fixtures and equipment (FF&E) to employees or colleagues.

This type of strategy leads to exposure of liability, management of assets to be picked up, and the disposal of items that are left behind, leading to a lot of wasted time that could have been spent on business operations.

The smart move is to retain a company that will complete 100% of the decommissioning, removal of FF&E, communication cable, trash and waste services; and make sure they provide recycling certificates to your client. This prudent strategy will preserve your security deposit and avoid unnecessary legal fees.


JoeManninoJrJoseph Mannino Jr is Vice President of Zero Cost Recycling, a Michigan based liquidation and decommissioning company.

Zero Cost Recycling creates efficient exit strategies for surplus and obsolete assets for commercial industries and facilities. Its client list includes Chrysler, Deloitte LLP, Detroit Public Schools, Walmart, Wayne State University and Sears.


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