How can you reduce you overheads when times are hard?
As the market starts to shrink, many companies are now starting to look at how they can reduce their over heads. The one area that a lot of people forget to look at is their occupational space requirements. Many Finance Directors feel that they are trapped by the constraints of a lease that they wished that they could get out of but just do not know how to go about it.
There are allsorts of ways of doing this…………maybe not necessarily getting out of the lease but reducing the fixed over head. The best starting point is to carry out a space audit.
When we carry out an audit we look at Space Optimisation, looking at ways to better utilise the space that is currently occupied, then look at the costs associated with that fixed overhead. The next step is to start by picking away at the costs, things such as the Ratable Value the Rents and Service charge costs. We look at ways that we can minimise a client’s exposure to repairs and their dilapidation liabilities whilst in occupation.
Then there is the lease, is it breakable? Can we sub let space? Or should we just move? All of these points and more are all considered when carrying out an audit.
Sometimes you are unable to do anything but more often than not, you can. We are working for some world class organisations including retailers and industrial companies. Just recently one of our retailing clients has just added over £250,000 to his P&L due to a windfall reduction in his operating costs of occupation. Who knows we may even be able to do the same for you and put money into your P&L that you haven’t even thought of.
We have a reputation for negotiating settlements in rent review, lease renewal, rating and dilapidation disputes. We carry out acquisition programs for retailers and look to deliver real results as quickly and efficiently as possible.
Whilst we may not be lawyers our expertise in understanding various parts of the law and how it affects commercial property is always tinged with a great deal of commercial realism. So an email or a telephone call asking us to come and talk to you may just improve you bottom line; what have you got to loose?