Just open the property pages of any business magazine and you are bombarded by dozens of adverts for commercial property.
With so much on offer, you may think that acquiring property is very straight-forward. After all, for most businesses the catalyst for looking for property is, generally, to accommodate growth or consolidate.
Property is important to businesses and neglecting it could cost you dear.
It generally represents over a third of a business’s total assets, and property running costs are the second highest cost after wages.
The Positives of Commercial Property
Property clearly has a major impact on the balance sheet but, of course, it is not all about costs, as there are distinct positives.
The correct property can make a real difference to your business and will bring bottom-line benefits:
- The right location may enable you to ‘steal a march’ on your competitors
- The working and sales environment can result in improved morale amongst personnel, leverage your recruitment and increase sales
- The image and profile it supports can enhance your competitive status through more positive positioning
Some businesses don’t know what sort of property they are looking for. They have ideas about the location, they know how many people they want to cater for and (in broad terms) they know the type of space required.
However, there are so many variables involved that when it comes to matching the brief to the property available, problems can arise in defining what they want.
Here are some points to consider when finding the right premises to suit your business needs:
- Deciding whether to buy or lease
- Acquiring and negotiating a lease
- Potential pitfalls when taking on premises
- Building surveys – when they’re needed and how to get the best advice
- Challenging dilapidation claims
- Making alterations to a premises – what can and can’t you do?
- What is the most appropriate valuation basis for your needs?
- Getting planning permission
- Renewing a lease
- Negotiating a rent review
Property decisions are critical to business success. Property is likely to be one of your company’s biggest assets and you cannot afford to waste it.
It is crucial that the process is managed effectively and profitably, as acquiring commercial property is not just about getting the best deal.
