News

Amateur property hunters are costing their companies thousands of pounds a year when it comes to acquiring new business premises by not using a chartered surveyor to carry out the search and negotiate the terms, according to one of Worcestershire’s most experienced commercial property agents.

John Dillon, managing director at Worcestershire commercial property consultancy and chartered surveyors GJS Dillon, says that many organisations searching for business space in Worcestershire and along the M5 and A38 corridors believe that they are saving money by looking for their own premises, but, by not having an experienced local property agent acting for them, they are actually losing cash.

He says: “Finding the right commercial property is not easy, particularly at present when there is a record shortage of business accommodation, with manufacturing, warehousing and distribution space in particularly short supply.

“Some properties are openly on the market, but not easily identifiable from one source, and a great many are off market. Businesses may never be aware of the entire choice, or believe, wrongly, that the type of premises for which they are searching does not exist.

“For businesses looking to acquire new manufacturing and distribution premises, especially between 25,000 sq ft and 50,000 sq ft, the choice can be extremely limited. Here agents’ contacts and knowledge can be particularly valuable in identifying and securing new properties before they come to the market,” continues Mr Dillon, who has more than 20 years’ experience of the Worcestershire and wider West Midlands’ commercial property market.

“For organisations looking to rent existing premises, there is a common misconception that agents can only help to negotiate the cost of the lease, and it is possible for any business person to bargain the rent down. But they do not know, because they do not work in the property market day in day out, just how much of a reduction they can negotiate.

“They also forget that rent makes up only around 60% of their total property costs and agents can help with service charge costs too, as well as with issues such as lease length, break clauses, assignments and other contractual terms.

“So, if you are looking for property for your business, the question should not be can you afford to pay a professional property agent to advise you, but can you afford not to,” concludes Mr Dillon.