By Andrew Kilpatrick BSc FRICS ACIArb IRRV, Partner of Thompsons

With many sectors of the domestic economy suffering from flat demand conditions for goods and services, margins for many businesses are being squeezed, particularly thanks to rising energy costs, which are pushing up transportation costs and trickling through the economy, pushing up the costs base for businesses in all sectors of the UK economy.

Andrew Kilpatrick, Partner of Thompsons, Commercial Property Consultants, says “With profit margins under pressure, many companies are looking for cost savings. Most businesses occupy some sort of property and a recent survey has shown that after wages, business premises are likely to be the second largest costs for a business. Any cost savings achieved tend to translate straight through to the bottom line to improve profitability”.

“A property audit carried out by a Chartered Surveyor can help a business find opportunities for cost savings and make the most efficient use of existing premises. For example, said Andrew Kilpatrick, there may be an opportunity to sublet part of the premises you occupy or reorganise functions to make better use of existing floor space. There may be opportunities for savings on rent, business rates, service charges and the like. Many businesses are not aware that at lease renewal rents can go down as well as up. If you need more space to service a particular contract, a Chartered Surveyor can advise on available cost effective options so that the business can make an informed choice. For example, serviced workspace can provide additional floorspace for a business, without the need for long term cost commitment on a property. It may also be appropriate to consider setting up a satellite office in a serviced office centre, which can save a business costs in terms of employee travel, time and costs.”

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