An Alternative to the commercial lease?:

A new entry into the serviced office category will open this month.  Dryland Business Club on Kensington High Street will provide high end service options for those not wishing to take on the rigours of a commercial property lease, with flexible arrangements to suit a variety of usage profiles.

Offering very high standards of accommodation, service and facilities, including usage of a chauffer driven Maserati Quattroporte, the new complex is the first of a string of centre being developed by former Foxtons boss, Jon Hunt.  Mr Hunt is bringing a new approach to the serviced office sector by making the facility more attractive to those who require the convenience of a London a base, without maintaining the commensurate overhead.  Packages start from £139 per month.

The services office sector has been progressing well for many years, with many seeing Regus as the flagbearer, and many smaller players coming into the market to address the requirements of the SME and sole trader.  From the look and style of the Kensington High Street Dryland is aiming at the entrepreneur for whom a prestige address in the West End without the hassle of running the offices themselves.  When fully occupied the facility will return approx. double the rent that could be expected under a normal rental arrangement, so not all bad!!

A second facility is expected to come on stream in Holborn at a later date.

O is for...

Outsourcing:

Non core activities outsourced, not a news topic you may say, but how far does this extend within your organisation?  The opportunity to outsource these types of non core activity has increased in recent times.  You are probably familiar with the “run of the mill” in outsourcing, from catering to waste management, office supplies to ICT.  But what about the outsourcing of your HR activity?  Or payroll?

The opportunity to bring in specialist services without the requirement to employ these on a full time basis is one of the backbones of the outsourcing principle.  Another is the opportunity to access specialist advice on non core activity, advice which would otherwise be expensive to maintain on an in-house basis.

The increase in legislation surrounding employment has seen a rise in the opportunity for SMEs (small to medium sized enterprises) to bring in specialist consultants and providers to keep them on the right side of employment law and up to date with current staffing requirements.

Similarly, there are opportunities for occupiers to get help with their accommodation and real estate services.  Many larger occupiers will have provision in place, but the smaller occupier can seek support with real estate related issues too.  From the outsourcing of facilities management to landlord and tenant issues there are opportunities to seek professional support in ensuring your organisation is fully up to speed.

James Alexander Consultants can help you understand your property, facilities and compliance requirements, 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.

Take stock and review

The commercial property sector is to come under further pressure during 2012 in the light of the current economic climate and the uncertain times ahead for the Euro Zone.  Both rental and capital values started to show sign of weakening during the Q4 last year and are expected to continue to decline during 2012 as the continuing uncertainty over the future of the British recovery continues.  Tough market conditions in the retail sector have led to have affected high streets across the country.  Even the usually resilient London market is starting to show significant stress with rental levels and capital values starting to decline as the number of potential transactions slows.

However, all is not lost!  With the decline in value for the landlord comes the increase in opportunity for the tenant.  Now is the ideal time to undertake a comprehensive review of all your lease and occupancy arrangements.

• Are you able to exercise any lease breaks?
• Are any leases up for rent review?
• Are you holding over?
• Have your business needs changed?
• Is your occupancy at the optimum?
• Could you place any non essential requirements in better value accommodation?
• Is there an opportunity to outsource activities?

Every cloud has a silver lining, see what lies behind this one for your business.

Innovation@jaltd.co.uk

Outsourced Services Sector

The Business Services Association (http://www.bsa-org.com/) has released details of a report prepared by Oxford Economics relating to the outsourced services sector in both the public and private sector.  It is reported that the outsourced services sector in the UK now has an annual value of £207bn, equating to approx. 8% of the UK economy.

Defined as being services provided under a time bound agreement, with some element of delegated authority and which typically in the past would have been provided by an organisation's employed staff, the outsourced services sector now rivals the financial services sector in terms of size (the financial services equates to 8.1% of the UK economy).

 The range of services falling into this category is vast and includes waste management, call centre operations, IT and data services, facilities management services and real estate and asset management provision.  The sector accounts for 10% of the total workforce, with in excess of 3 million people employed in the sector, nearly 600,000 engaged in property management related activities including cleaning and maintenance alone.

The sector makes a significant contribution to UK plc with £14bn a year being paid in corporation tax, employee NI contributions and business rates with a further £21bn coming from employee income tax and NI.