Olympic Efficiency

In April we posted about new working methods and achieving efficiencies in the working office (http://www.blogger.com/blogger.g?blogID=5846477312477271059#editor/target=post;postID=2402608171377203908).

We now learn that Government departments are taking steps to implement new ways of working to create flexibility, cost efficient and improved productivity.  It appears that numbers of civil servants will be relocating, on a temporary basis, from central London to a base in Croydon.

The move is being championed as an opportunity for central government to implement some of the more efficient practices of the private sector whilst also “helping to reduce pressure on London’s transport network during the Olympics” according to Cabinet Office Minister, Francis Maude. 

It is not certain whether this move is purely temporary, as, if the hoped for improvements are achieved then a more permanent solution could be found.  It has long been the stated goal of Central Government to move more of it’s London based activity out into the regions.  Spearheaded by the Government Property Unit, opportunities for estates rationalisation and collaboration by Departments are promoted.  Opportunities for interdepartmental estate rationalisation and co-location are continually being pursued and this latest Olympics based initiative has seen additional accommodation become available in St Leonard’s on Sea, Bedford, Dorking

and Reading.

Innovate:

Changing times call for ever more thoughtful approaches to your asset management challenges.  The current marketplace within commercial property is even more volatile than usual, and, whilst geography plays its part, the general view of the marketplace is that conditions are hard and likely to be so for the forthcoming time.

Spending time in careful consideration of the challenge this places on your business with regard to your built assets and liabilities is therefore well worth it.  In a previous post we have talked about the place within your business the build estate holds and the opportunity for the review and assessment of the estate in the light of this.

Detailed knowledge of your real estate liabilities will enable you to clearly plan ahead and, in conjunction with you business requirements, determine whether there are any opportunities to do things differently.

There may be scope to reorganise finances through the asset and balance sheet, to renegotiate terms with your landlord or reorganise loans on freehold occupancy.  Assessment of the utilised estate and how it could be improved, could allow for sub-letting (should the terms of the lease allow).  Group companies can potentially co-locate to reduce costs and vacating premises can save costs, even if the lease is still in force, with running and occupancy costs reduced to near nil and the potential for rates relief.

James Alexander Consultants are expert in assessing your portfolio and, with you, determining a strategy to develop the correct balance of assets, their relevance and performance for you.  We develop, plan and implement the strategy, leaving you to focus on core activity and opportunity.

eMail us on innovation@jaltd.co.uk or see our contact page for our numbers.  We look forward to speaking with you.

V is for...

Valuations:

The valuation of a property is usually directly related to its market value and this is where the art, some would say dark art, of the valuation comes into its own.  The purpose of a valuation will have a direct influence on its outcome and therefore has to be specific to the requirement.

Valuations may be undertaken for many purposes including:

• Mortgage finance -
• Acquisition
• Sale
• Probate
• Litigation
• Leasehold Enfranchisement
• Property development
• loan security valuations
• asset and fund valuations
• valuations for accounts purposes
• retrospective valuations
• development appraisals
• valuations for corporate owners and occupiers. 

and more……

As with any subjective view of a situation, in this instance the market value of an asset, there exists the opportunity for dipute and disagreement.  In any situation whereby someone is seeking to prove a value, another party will be seeking to disprove it.  It is therefore vital that not only do you commission the correct valuation for the correct purpose but also that you commission it from a surveyor with relevant and in depth experience.

James Alexander Consultants can help you determine the best approach to valuations of your asset base and get the right surveying team in place.

eMail us on innovation@jaltd.co.uk or see our contact page for our numbers.  We look forward to speaking with you.

P is for...

Planning & Strategy:

Occupying business premises is no laughing matter.  The costs involved can be significant and the penalties, should you get it wrong, can be severe.

Having said that, the opportunity for it to go well is significant!  Like all property transactions in the UK (well England and Wales anyway!) the pace of movement is usually somewhere akin to that of the proverbial snail.  Lease break clauses do (should) not usually sneak up on you, they are telegraphed well ahead of time (when the lease is signed?).  So the opportunities for you to plan aspects of your estates strategy are easily able to be recognised and addressed.  However, that is not the whole picture.  Not all elements are so easily planned.  As we have said many times before, the real estate only exists to support your core activity, it’s there to help you to produce your widgets or build your social media empire or whatever.

And (yes, you can start a sentence with and) that’s where the challenge comes.

Planning a strategy to match your real estate occupancy to your business’s operational requirements is not too difficult in principle, but will throw up some very challenging questions to you and your colleagues.  I was with a client recently and the discussion revolved around the business’s requirement to relocate to larger operating premises, the availability, or lack of, suitable prospects in the locality and the impact a more significant geographical move to achieve the right accommodation could have on the business in terms of the potential for the loss of key staff.  An interesting conundrum and one that the jury is still out on.

Size, location, mix, usage and cost will all play a part in developing a coherent strategy for real estate and the activity should be undertaken with the same thoroughness that is applied to the operational aspects of the business.

James Alexander Consultants can help you find your way through to the best solution to your accommodation needs.

eMail us on innovation@jaltd.co.uk or see our contact page for our numbers.  We look forward to speaking with you.

M is for...

Management:

A quick thought or two on a Saturday.  A recent conversation with a former client made me consider that although owners or occupiers of large real estate portfolios will probably have a contracted resource to help with elements of the management of that estate, will it necessarily be the right resource?

The management of a large mixed usage asset portfolio, for instance, will present the owner/occupier with a number of challenges in the management and running of that estate and buying in services to help with that undoubtedly has the potential to assist greatly.  This will only be the case if the resource contracted has specific knowledge of the requirement.  A management company primarily used to dealing with urban and office environment will not necessarily be as used to dealing with the land agent and agricultural role.

Have a think about who is managing your activities and consider whether there are areas that could see improvement.