Commercial surveying news from the Beattie Partnership

Commercial Property: Why is Size Not Important?

Are you looking at commercial property, with a view to expanding your business?  If so, it is important that you take the time to assess what you already have and set it against what you might have to commit to, if you decide to upsize to bigger premises.

Corporate property planning doesn’t have to be about moving to somewhere larger in the pursuit of bigger profits. Sometimes the sensible option is to stay put.

Not moving, however, does not mean settling for second-best.  It can be to do with managing your resources more effectively to maximise the use of the space you have.

The Costs of Expansion

Taking on a larger space might seem like a healthy indicator of growth, but it can contain various hidden costs which, in the long term, will eat into your profit margins.

Relocation can be a costly process, from stamp duty land tax to solicitors’ fees and obtaining the new landlord’s authority to make necessary alterations and adaptations.  There’s also the cost of refurbishments and fit-outs. You’re also likely to face increased service charges and, possibly, business rates.

With the imminent business rates Revaluation, it is important to establish what direction they will take by checking the Draft Rating List.

It is important to review your situation strategically to determine whether moving will ultimately increase or deplete your margins.

Should You Stay or Should You Go?       

Your actual workspace should be assisting your business, rather than simply providing a shell for you to occupy.

Making your existing office accommodation a more dynamic space involves managing it more efficiently and, where necessary, adapting different parts of it for different functions.

This might involve a greater proportion of shared space, or a redeployment of staff so that they are more mobile within the office. An effective office plan should accurately capture the culture of a particular workplace so that the people working in it feel comfortable but energised.

Sometimes staying put, but adapting, can save money and, in the long run, boost profitability.

Property advice is not restricted to taking opportunities to acquire or occupy new property, or sell existing premises. For The Beattie Partnership, it is about finding out how a business’ needs can be best met by its surroundings and helping people make sound business and financial decisions.

For an additional view, our Partner, Paul Giness, has published Office Space: Is Staying the New Moving?            

Alternatively, to discover how to maximise your commercial property, please contact us.