More efficient use of property could boost profits, says RICS

The average worker takes up over 14m2 of office space, a survey from RICS this week has shown.

New guidance issued by the institution shows that the average office worker in Britain – of which there are 6.9 million – takes up 0.3 more square metres of space than two years ago.

This costs businesses an average of £4,000 per person annually, although this is £155 less than in 2002 (see fact file).

The RICS put the less efficient use of space, and the drop in actual costs compared to 2002, down to static office rental rates during the last few years.

The study also looked at regional variations of office use. The highest square metre usage of space was in London, which used 18m2. The lowest was the South West, where an average office worker used a third less space (12m2). London also topped the office cost per employee last year at £9,100, while the cheapest region in Britain was the East Midlands, which only costs business £2,000 per worker.

The study found that UK businesses could substantially increase their profits, by up to 13%, by making better use of property.

RICS small business spokesman Ian McRae said UK firms often ignored property.

He said: “Good strategic property advice can allow a business to expand at the right pace, increase profit margins and make the difference between an enterprise that flourishes and one that struggles.”

McRae’s views were backed by senior business figure Digby Jones, director general of the CBI. He said: “British businesses are throwing away billions each year in the form of wasted space and under-utilised property. But the right advice can turn a company’s commitments from a liability into an asset. Businesses need to understand just how beneficial the right strategy can be.”

The RICS is offering guidance to all businesses on how to manage their property requirements. It is also offering pointers to help businesses with other issues such as service charges, tax allowances, rent reviews and renting or buying business premises. The new business property guidance is called Getting Serious About Your Business and is available as a CD and online from: www.propertyinbusiness.co.uk