06/07/2009
In tougher times, businesses need to get the most our of all their assets, in this article Stuart Planner offers a quick run down of the areas where you could be realising greater value from your property.
There is no doubt that the recession is affecting all sectors of the economy. Whilst many businesses will have made a conscious decision to do nothing and wait for things to improve, many others will want to look at ways to maximize their property asset values
Redundant Buildings
As a business evolves and changes, so its property requirements change. Some buildings on a site or estate might fail to meet the future needs of the business and in many instances these are relegated to secondary storage uses, left behind as you take the business in a new direction. But can something else be done with them? There could be potential to obtain a change of use to something more valuable to your business, or for letting to a third party.
A letting will not only bring in income, but could also see a building brought back into repair, saving you business rates and insurance liabilities. Care should be taken through to ensure that your business retains the ability to regain possession in the future if your business changes direction again.
Nibbling at the edge
Your business holding may not be utilising the entirety of the site or estate, potentially providing opportunities for selling off small areas to third parties. With careful attention to the planning opportunities, it may be possible to find disposals which bring in capital receipts whilst having little or no impact on your business.
Repair and maintenance programmes
In these times of budgetary constraints there is a call for restraints on spending in every department. However putting off minor repairs today can be disastrous in the future as problems escalate – a small roof leak now might lead to a complete replacement if left. Prioritise and plan the work over the year and identify packages of work to put out for tender. If necessary, call in a building surveyor to help plan the maintenance programmes, prioritisation of work, pricing schedules and tendering and monitoring of work.
Reducing property occupancy costs
Have you looked recently at how much you spend on rent, rates, insurance and services? It might be possible to renegotiate tariffs, or make appeals on business rates and rent. All commercial rating assessments will be revalued on April 1, 2010, with draft assessments being published in the autumn. You need to assess whether your rates are too high and whether you should be appealing against them during the limited window given for appeals.
Equally, even if you are locked into a lengthy contact with the energy suppliers, it might be prudent to look around now and identify savings through new contracts.
Any of these highlighted areas could reduce your costs or benefit your business. At Vail Williams we work with our clients to ensure they are using their property assets to their best advantage, putting them in a strong position to deal with the economic challenges and allowing the flexibility to benefit from upturn.
