Chartered Surveyors, Industrial & Commercial Land & Property Agents Northampton, UK.
Chartered Surveyors, Industrial & Commercial Land & Property Agents Northampton, UK.
Chartered Surveyors are vital to business efficiency and profitability, says Simon Forrester
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| Ian McRae, principal of commercial property surveyors, Chadwick McRae |
The potential use of commercial property as a profit-generator would appear to be one of the economy's best kept secrets.
According to a report, Property in Business – A Waste of Space? commissioned by RICS, an alarming number of businesses just don't realise that they are sitting on, or in, their second highest cost or their greatest fixed asset.
The report estimates that UK businesses are throwing away up to £18 billion a year through inefficient use of property. Cutting out this waste would increase gross trading profits by up to 13%, dramatically improving the economic performance of the UK.
The core of the problem appears to lie with business management. While property is often the second highest business cost after wages, it is rarely on the boardroom agenda. Property management is usually handled at an operational, rather than a strategic level and many companies do not have an accurate assessment of their property costs.
Clearly this makes no sense when there is so much at stake and when huge decisions are required on issues like whether to buy or lease, rates appeals, pension schemes, location and working environment.
The message is plain: UK businesses would benefit enormously from a different approach and engaging the services of a chartered surveyor in commercial property would, almost immediately, pay for itself many times over.
A chartered surveyor in this specialism will have detailed knowledge of the minefield of commercial property. They have the skills and experience to advise on, and handle any aspect of property transactions.
Someone with an insider's view of the role is Ian McRae, principal of commercial property surveyors, Chadwick McRae: "People think of us as valuers but we are much more than that. I consider myself a property expert, negotiator, valuer, asset manager, deal-maker and business advisor."
The starting point is to take a brief, or instruction, from a client who could be a tenant or a landlord. Where a tenant requires new or additional premises, the property surveyor will take into account the nature of the business and will want to know about desired location, transport links and staff requirements. They will help the client work out aspects like the required size, the need for offices, storage space, parking and loading bays.
They will discuss the planned length of occupancy and will use their experience and judgement to advise on whether to lease or buy. They might recommend going for a new brown or greenfield site and building bespoke premises.
Once the brief is agreed a chartered surveyor will use their knowledge of the market and their contacts to find the most suitable property solution. They will inspect the alternatives, make a short list and then show them to the client.
When the property is chosen the surveyor will begin serious negotiations with the landlord/owner and see the acquisition through to completion.
In many other cases the client is not looking for new premises but might need to renegotiate a lease or negotiate the purchase of premises they currently rent. Alternatively the client may have just received a new business rates assessment. A chartered commercial property surveyor will use their experience and negotiating skills to improve the client's situation and, may well save them a considerable amount of money.
On the other side of the coin, the client might be the landlord looking for a tenant or requiring someone to manage some properties as an investment portfolio.
With thirty years' experience, in both the UK and Kenya, what still attracts Ian McRae to the job? "The biggest buzz I get is from negotiating because I can use all my skills and I'm dealing with people, which I enjoy. Although my business is based in the East Midlands, I travel where a client sends me, i.e. literally anywhere!"
What does Ian McRae think are the ingredients for a successful career as a chartered surveyor in commerical property? "I think there are several but for me it was a fascination for property. From quite early on I realised a property career offered the opportunity to travel, make a good living and meet a wide variety of people. I originally considered stockbroking and insurance but I quickly realised that surveying was what really interested me."
