Business space can account for a significant proportion of outlay and with the current economic outlook causing many businesses to review their expenditure, commercial property experts at Carter Jonas have prepared a 10-point action plan to suggest ways in which companies can reduce costs.
Top of the list is considering sub-letting excess space to offset overheads and, in doing so, additional income might even be generated.
Other points cover property management aspects such as analysing utility contracts and opening up a dialogue with suppliers to see what offers or concessions they are prepared to make.
In this category comes an understanding of the business’s liability for dilapidations according to the lease. Here, Carter Jonas cautions that short term savings on maintenance can often result in significant costs in the long run.
Effective space planning could also alleviate pressure on existing space as there could also be opportunity to outsource storage off-site to maximise usable space.
In the action plan, Carter Jonas also suggests examining any break options in the lease and the conditions attached, as these are not always straightforward and there can be legal traps in to which occupiers can, unwittingly, stumble.
Demanding unrealistic concessions from landlords is certainly not the best way to negotiate nor maintain a good landlord and tenant relationship. But, there is good value to be had by looking at how a business uses its accommodation, according to Carter Jonas.
Duncan Quig, Head of the Commercial Team at Carter Jonas in Cambridge, says:
"Landlords and occupiers have much more in common than organisations and lobby groups with vested interests would lead us to believe.
"It is agents who tend to see this common cause as we are generally best placed as the arbiters to judge what is achievable in any market climate."