The ability of UK businesses to compete against those located in other G7 countries is being hampered by a lack of property innovation, according to a December 2017 survey conducted by the Property Directors Forum. Among other things, the data gleaned from the survey indicates that a lack of landlord innovation is sufficient reason to move when companies believe that doing so would help productivity.
Here are some of the more telling numbers from the survey:
- 53% of property directors indicated 2017 was a difficult year for productivity
- 80% of property directors expect costs to rise this year, even as space per person decreases
- Just 7% of property directors see innovation as a company objective
- 20% of organisations do not have a property innovation strategy in place.
A thorough reading of the survey makes it clear that property directors are looking at a mixed bag for 2018. The one thing that seems to be clear is that property directors and the organisations they work for are finding it difficult to work with landlords who are not thinking proactively.
Innovation to Make Business Better
One of the things commercial property advisers look at when advising clients on their desire to move is whether such a move makes business better. Just like innovation for its own sake is not always wise, moving the business to a new location without careful consideration of whether said move will improve business or not is unwise.
It is one thing to lament the lack of landlord innovation; it’s an entirely different matter to figure out what kinds of innovations would actually benefit a business. Perhaps part of the perceived ambivalence of landlords is due to companies not knowing what kinds of innovations they actually need. If a company doesn’t know how to make itself better, there’s not much a landlord can do by being proactively innovative.
When Moving Makes Sense
Another foundational truth commercial property advisers know is this: moving makes sense when a landlord refuses to innovate despite numerous requests from a tenant. Simply put, if a landlord knows that a tenant needs to do something different with the space but refuses to get on board, that is sufficient motivation to look for new space.
A lack of innovation by a landlord should never be allowed to hold a company back. Landlords may perceive that investing in property innovations doesn’t offer any tangible rewards, and that’s fine. But the tenant’s business should be more important to the tenant than the landlord’s. A landlord’s unwillingness to innovate shouldn’t become the tenant’s business strategy.
As a commercial property adviser, I am ready to assist you in trying to figure out the best course of action for your company. I am ready to help you figure out whether moving makes sense or not. If it does, I can assist you at every step of the process to guarantee the best end result for your company.
Property Directors Forum – http://www.propertydirectorsforum.com/assets/Property-Directors-Forum-Survey-Results-16th-Nov-2017-final.pdf
By John Parkinson.
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