July 13, 2005—Many UK companies do not reap the potential benefits of using their property efficiently, according to new research by the Royal Institution of Chartered Surveyors (RICS).
The RICS work shows that each of Britain’s 6.9 million office workers occupies over 14 square meters of office space (at an average annual cost to business of over 4,000 per person). Space per employee has risen slightly over the last three years. Static rents in the UK commercial property market are keeping a temporary lid on property costs, which has led some companies to be less efficient at utilizing space.
Business rates however, have increased significantly for the 100 million square meters of office space in Great Britain, according to the RICS research. Property is the biggest business expenditure after staff, the equivalent of 13% of average office salaries, although this rises to as high as 22% in London where staff densities are less.
Upon analyzing the research, the RICS found that UK businesses could boost profits by up to 13% annually with the right property strategy. As a result, the RICS produced new guidance to help businesses of all kinds and sizes with issues like service charges, rent reviews, tax allowances, disputes with landlords, home working, subletting and renting, or buying business premises.
The new business property guidance and a free CD-Rom “Getting Serious About Your Business Premises” are available from RICS.
