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Sunday 24 September 2017
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Office Space: How Can You Profit by not Expanding?

Office Space: How Can You Profit by not Expanding?

For many businesses expansion means just that: they expect to have to meet their development with increased accommodation or office space. However, this
is a big commitment, and if it does not go as planned, it can leave companies vulnerable.

Firstly, in some regions there is fierce competition for office space, which makes it a sellers’ market. Secondly, the outlay for this kind of physical expansion can ultimately eat into a business’ margins so if their projections are off, they stand to lose by attempting to expand.

 

The Costs of Moving

“As a specialist of commercial and education property, we provide an understanding of what works best, by analysing present and projected situations,” observes Paul Giness of The Beattie Partnership.

“In certain circumstances, not moving should be the preferred option, and businesses can thrive by examining how they use their current space and improving on it,” continues Paul.  “Accommodation can be tricky, and moving to a larger space carries with it all sorts of extra financial commitments and potential liabilities.”

There are hidden costs associated with moving office, which can include:

 

  • dilapidations costs for the previous property;
  • stamp duty land tax;
  • obtaining landlord’s approval for alterations;
  • service charge increases;
  • rate increases
  • solicitors’ costs.

 

Some of these are associated with the move itself, but some will be ongoing.

Specifically, in terms of business rates, the 2017 Rating Revaluation is imminent and it is important to establish what direction they will take by checking the Draft Rating List.

 

Making the Best Use of Office Space

“The alternative to moving is to make the most of what you already have,” Paul suggests.  “This isn’t about restricting yourself, or settling for second best, but rather maximising your office space to ensure that it works for you.”

 

“Don’t think of office space as passive, but as something designed to accurately reflect the culture of your business and to help it work as dynamically as possible”

Paul Giness, The Beattie Partnership

 

This goes beyond décor, and should include the right allocation of space for the right kind of functions within the business. It might involve a more mobile, hot-desking workforce, or greater emphasis on shared spaces and breakout areas.

“Analysing your existing space and making positive changes to it can absolutely transform how you work,” Paul concludes, “without the additional commitment and expense of relocating to larger premises.”

For more of Paul Giness’ views, please read his LinkedIn post, Office Space: Is Staying the New Moving?

Alternatively, to discover how to maximise your office space, please call The Beattie Partnership on 0161 228 2224 or visit bepart.co.uk.