Commercial Property

Commercial Property: Renting versus Buying

Choosing commercial property, and whether to rent or buy, is regarded as one of the most vital decisions for any company.

It’s a difficult process for all businesses, whether you’re a small SME working from home requiring space to satisfy a growing workforce, or a larger firm planning a move as the next step in your expansion plans.

So, what are the benefits and drawbacks of each? And which one is right for you?

Renting Commercial Property

As it stands, most businesses do rent their premises, in fact, over half of all UK commercial property is rented (compared to only 33% of homes.) So, why do so many businesses choose this option over buying?

Price

Not surprisingly, the biggest influencer for most businesses is price. And in many cases, renting is the more cost-effective solution.

Buying a property will require considerable equity and a commercial mortgage which you’re committed to long-term. It’s important that you consider not only the impact this will have on your profit margins, but also the restrictions it will place on your ability to generate or loan capital for new projects.

Often, when you’re only renting a property, the chances are you’ll have less responsibility for maintaining the premises. Instead of shelling out to fix that broken toilet (trust us, if it can break, it will), the responsibility should fall to your landlord. Although the issue will still be an annoyance, it won’t be a financial one! (*Editor’s note: Please be aware that whilst this is often the case, occasionally a tenant will be required to maintain the premises if stated in their contract).

Increased flexibility

At some point in time, your business (hopefully) will be ready to take the next step and upgrade to a larger facility. This will be much easier if you are renting a property and only need to inform your landlord within the required notice period.

If you own your current property, any move will be a.) Dependent on you selling your current building first and b.) Constrained by the lengthy process involved in acquiring a new site.

The ability to move offices in a swift manner could be critical in you reaching your long-term business goals.

Better availability

We’ll keep this short and sweet. Due to the speed in which new commercial property is being developed across the UK, the choice of buildings you have when renting far outnumbers those available for purchase.

Less Time-consuming

Buying a commercial property is a prolonged task. Never mind the legal fees required, the whole process is likely to take up a lot of time and energy that, if you rented, could be spent improving other areas of your business. Whilst renting will still include a lot of paper work you’d rather not do, it pales in comparison to the workload associated with buying your own property.

Buying Commercial Property 

So, at this point you’re probably thinking renting is the best solution and wondering why anyone would bother to buy their own site. Well, think again. Just like renting your premises, the benefits for buying are plentiful.

Re-sale profit

This point certainly doesn’t require much of an explanation. One of the biggest benefits or purchasing your own facilities is that, should the value of the site increase long-term (known as asset appreciation), you are presented with the option of selling the premises at a profit, enabling you to invest your capital into other areas of your business, possibly even a new, larger facility.

Additional revenue streams

There are numerous reasons why your current premises might be too large for your business. Maybe you’ve realised you need to downsize? Or possibly your business hasn’t grown at the speed you were forecasting? Either way, when you own your property, this situation doesn’t have to be a bad one. If anything, you should look at it as an opportunity to maximise your revenue streams.

Unused space in your premises can be turned into an advantage. Many businesses sub-let their commercial property to other businesses and generate an additional income.

Increased business valuation

When you purchase a property, it then becomes a tangible asset for your business. Should you be seeking potential future investment, or even considering a future sale of the firm, owning your own facilities is certain to increase the valuation of your business. Owning your own premises could even be a deciding factor in the buyer’s decision to purchase your firm.

Just think, when you’re renting your property, what are you getting back (long-term) for your investment? Buying the site outright will mean every penny you spend will go that little bit further towards building equity.

Long-term stability

If you don’t own your own building, you aren’t the master of your own destiny.

Imagine you have a three-year lease with your current landlord. The three years is coming to an end and you’re more than happy where you are, it feels like home. Only to find out that your landlord has other plans for the property. What do you do then? What if moving is not financially viable for your business?

If you own your own property, this won’t occur. Controlling your own facilities enables you to plan for the future with confidence and security.

Conclusion

So, there you have it.

As you can see, there’s no definitive answer to which option is the best. Before you start the process, it’s important that you consult your long-term business plan.

There is no right or wrong choice as it wholly depends on the unique needs and requirements of each business.  Before you make any decision, it’s always advised to speak with an expert first who will lay all the options out in front of you.

We hope we’ve given you food for thought on the subject and you’ve left with a better idea on which direction to take.

For more helpful tips on running your business, visit our media portal.

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Alan GarrattTraining & Development

Alan joined GAS in July 2016 having spent 11 years as a business owner, followed by 12 years at the mobile communications company EE. With a successful background in business sales, he moved into the world of Training & Development and specialised as a Management Development Consultant. Alan is tasked with creating a strong learning and development offering, where all employees receive the right level of support, training and development. His role incorporates needs analysis, training design and delivery.

Alan Says…

The pull of creating an L&D function at a young and vibrant company was too hard to resist. The board of Directors and senior management team are extremely pro-active where learning is concerned and push to get the best support for our people. My role is so diverse – one day I can be mentoring our young apprentices and the next I can be writing a management development session.

Did you know?

Alan goes camping regularly in the Highlands of Scotland and owns land on the West Coast. He has the official title of ‘Laird of Dunans’… his daughter bought him one square foot of land as a gift!

Bradley GrovesCEO & CHAIRMAN

Having co-founded GAS in 2012, Bradley has helped oversee the companies’ huge growth in a short space of time. Starting from its modest surroundings in South Shields, the rapid growth has seen the business move to its current surroundings in Seaham. Bradley’s background is in retail management and he has a wealth of experience working for a number of FTSE250 companies in a board level capacity, most notably with the Caudwell Group.

Bradley says:

"Certain businesses we’ve worked with have made six-figure savings over their contract terms, we cover a very large area when it comes to variable costs, and when we get involved, it means the companies can focus on their business while somebody else is focusing on what they specialise in."

Did you know?

Bradley is the proud Owner and Chairman of Spennymoor Town Football Club, who have achieved 4 promotions and Eleven trophies since his takeover in 2009. As a youngster, he was also on the books of Aston Villa Football Club until an unfortunate injury took him down another career path which has culminated in the empire he has built today.​​

Chantelle WallerTeam Manager (IT)

Chantelle is a Graduate of Teesside University, where she studied towards achieving a BSc Hons degree in Information Technology.

Her IT career blossomed upon joining local firm Teesside Steel Works in 2011, where she progressed from the IT Helpdesk to become a Desktop Support Analyst. Following a four-year spell with organisation, Chantelle moved to Great Annual Savings in 2015, where she currently heads up the IT department and is responsible for managing the business’s technology systems.

Chantelle says:

“I’m extremely grateful for the opportunity I have been given at GAS. There are real progression opportunities here and I have developed my career from Desktop Support to IT manager in the space of just two years. GAS make me feel valued and recognised.”

Did you know:

Chantelle is a qualified British Sign Language interpreter with a NVQ level 3 in British Sign Language.

Craig ShieldsHead of Quality & Risk

Craig spent the first 10 years of his career working in Education, firstly as a lecturer, then latterly as a Head of Sport, Leisure, Travel & Public Services at East Durham FE College. Having moved into the private sector in 2012 running a local franchise of Loughborough based business telecommunications company Crimzon Communications, Craig first became involved with Great Annual Savings by providing the telecommunications​ arm of the value added services of the business. In 2014, he turned that business rapport and relationship into a full time role within the company as our Head of Compliance.

Craig says:

"Being part of GAS is a journey, you genuinely feel part of the organisation and that your contribution makes a difference. The growth I’ve witnessed since I’ve been involved with GAS is phenomenal, to see us move from small serviced offices to where we are now has been a pleasure to be a part of. It’s exciting to think that we aren’t finished yet, with plenty more growth to come.”

Did you know?

Craig once appeared on the stage version of Catchphrase in Blackpool with the one and only Roy Walker.​​

Judith BennisonGroup HR Director

Judith was part of the team who initially set up Great Annual Savings in 2012, she brings with her an abundance of senior management experience, managing the HR/Resourcing functions in numerous fast growing FTSE250 companies including De La Rue International PLC, Blacks Leisure Group PLC and most recently G4S PLC. Judith has played a pivotal role in helping move the business forward with our ambitious growth plans and her impact has seen our head count grow significantly year on year with significant plans in place to manage and lead the continued growth going forward.

Judith says:

"Businesses who are pro-active continually look at managing their costs effectively, those who wait until a recession hits, are reactive and often too late. We want companies to be pro-active and take the pain away by saving costs now, letting GAS do the fully managed cost solution just makes good business sense for any company, whatever the size or industry. Our business ethos is something I truly believe in and want every company to benefit from our help and support, working collaboratively together is a great way to build long term relationships.”

Did you know?

Outside of work, Judith likes to turn her passion to Yoga incorporating head stands, hand stands, tree pose, back bends and still being able to twist & turn along with her fellow yogis. She is on the journey to lotus pose but 5 years on is not quite there… yet!​​

Lauren RedmanHR Manager

From Sunderland to Chicago and back again, Lauren has made significant strides in her career since graduating from Sunderland University with a 2:1 degree in Business & Human Resource Management back in 2011.

Lauren says:

“Attending University was a great learning curve for me and gave me a great insight into what I could achieve in my career. I was also afforded the opportunity to gain some fantastic work experience with Gateshead Council and Trade Training Associates, harnessing my skills in the end to end recruitment process and other generalist HR projects.”

After graduation, she took on a one-year internship in Hospitality Management in Chicago with Marriot. Upon her return to the UK in late 2012, her journey with Great Annual Savings began.​

Liam GrovesTeam Manager (Compliance)

An Alumni of Leeds Beckett University, Liam graduated with a 2:1 degree in Business Studies and has been part of the furniture from day one, starting his career at Great Annual Savings on a 12-month undergraduate placement working as a Business Solutions Manager. Having completed his degree, he took on a role as part of the Sales Administration Team.

Liam says:

“Being part of the companies’ inception and ongoing development has been a challenging yet rewarding experience which has helped me gain invaluable skills and knowledge of working in a fast growing private sector business.”

Since attending Argyle House School and Durham School 6th Form, Liam has always displayed a passion for business from an early age. You could even say it’s in his genes.

Over the years, Liam has worked his way up through the company and is now part of the Customer Compliance team working as a Compliance Manager, picking up a number of qualifications along the way including an NVQ in Customer Service.​

Mark JonesAssociate Business Solutions Director (UK & I)

Mark joined Great Annual Savings shortly after the company began trading in 2012 as a Business Solutions Manager, after initially beginning his career working in the Finance sector with Barclays, RBS and HBOS Group. His skills and high work ethic were quickly recognised as he was first promoted to a Team Manager, and then later to the Head of Sales, UK & Ireland. As one of the longest serving members of staff, he has now built a strong team of Energy experts designed to take the pain away from our customers when it comes to their utility bills and give them peace of mind and the time to do what they do best; run their business.

Mark says:

"The speed of my progression and development has been amazing. The guidance and ongoing support the Group has provided me to aid my development has been invaluable. It’s great to be able to assist businesses to reduce their costs and their customer satisfaction gives me personal satisfaction in my role.”

Did you know?

Mark is a lifelong Sunderland AFC supporter, attending every game home and away throughout the season with his young son Josh.​​

Matthew HerrellAssociate Director

A chartered accountant for over six years, Matt joined Great Annual Savings in 2015 after playing a key role in the growth of UK IT firm Onyx Group. As Associate Finance Director, Matt is responsible for planning, implementing, managing and controlling all financial-related activities for GAS, including the development of financial and operational strategies.

Phil AndrewAssociate Customer Experience Director

Phil joined GAS in May 2016, having worked in a number of blue chip organisations over the past 25 years including The AA, Tesco Bank, Aviva and Barclaycard. With the company committed to providing a first class customer journey and experience, as well as colleague engagement, Phil’s knowledge and experience as Head of Complaints at Barclaycard and Customer Experience at the AA is key to GAS delivering a first class experience to each of our customers’ every time.

Phil says:

"I am really excited to be a part of a local company which is looking to grow by putting the customer first. I was attracted by the positive culture that has been created and the opportunity of working for an organisation that is always looking to invest and develop its workforce and support the local community.”

Did you know?

In 2005, Phil was accredited a Six Sigma Black Belt whilst working for Zurich Financial Services. A winner of a number of industry awards, he also wrote and delivered the hugely successful Barclaycard “Obsessed” Program, which was designed to put the customer at the centre of the organisations thinking.​​

Philip BallNon-Executive Director

For over 30 years Phil enjoyed a career working for Local Authorities in Lancashire, City of Newcastle, Derbyshire and County Durham specialising in sport, leisure and cultural services before leaving his Director’s role at Sedgefield Borough Council in 2009 to start a leisure consultancy company. Having been commissioned to work on football and community related projects for Spennymoor Town FC in 2010, he developed a close working relationship with Club Chairman Bradley Groves.

Phil says:

"Outside of working on football club activity, discussions with Bradley began to explore how we were aware that many of the companies we had both worked with needed specialist cost reduction services which led to the creation of the Great Annual Savings Company in 2012 and began a journey of rapid expansion for us and huge financial benefits for our customers.”

Did you know?

Phil is a keen sportsman, his current playing passions are golf and sailing although when he was at school in Rotherham, he was proud to represent Yorkshire Schoolboys at Cricket and still holds his school’s wicket keeping record of taking 47 stumpings and 4 catches in a single season.​​

Ricky MingleCSR Ambassador

Ricky joined Great Annual Savings in May 2016, having spent eight years working in a Marketing and Data Management capacity in the events sector. To run alongside his core function of Email Marketing and Internal Communications Manager within GAS, Ricky was elected as Chairman of CSR in February 2017. He has been tasked with making a significant difference to the area of County Durham by raising money and spending time volunteering to help those in need. Putting his 10 years fundraising experience into practice, Ricky and the team did their due diligence and decided to support Animal Krackers, Heel and Toe Children’s Charity, Durham Foodbank and Wag & Co.!

Ricky says:

“When the opportunity arose to be part of the CSR team, I didn’t hesitate to put my name forward. The Group are very passionate about making a huge impact to small charities in our local community and the challenge now is to deliver on that. We have seen a positive response from the whole business to get behind our CSR drive, and with a number of successful events already done and many more planned over the coming months, we are in a prime position to fulfil our mission. It is great that staff have been given the opportunity to physically go out and support our charities as well, allowing for them to get involved and have a connection to our cause.”

Did you know?

As well as being a songwriter, Ricky is a Grade Five violinist.

Robbie ShearerHead of Field Sales

Robbie spent the early years of his working life in the public sector, including a stint in the Northumbria Police Force. After leaving his role at the Learning Skills Council, Robbie turned to a life of sales and hasn’t looked back since.

With a decade’s worth of experience in the utilities sector, Robbie is an expert on helping businesses find the right energy solution. Joining GAS in 2016, Robbie played a key role in establishing our Field Sales Division and spreading GAS’ portfolio throughout the UK.

Robbie says:

“Being at GAS has helped develop my career massively.  Working for a business and part of a senior management team who make you feel valued and make sure your contribution is recognised is really important to me and I feel like I have that in abundance here. “

Interesting fact:

I once successfully picked 5 numbers and the bonus ball on the Lotto and went to Camelot offices to collect my prize and have my picture taken.

SPID Number

Your SPID (Supply Point Identification) is a 13 digit long reference number that can be found on your most recent water bill.

Suppliers will use your unique SPID number to switch your retail services.

Victoria WaltonHead of Resource and Talent

Vic joined the GAS Group in 2016 following an 18 year career in recruitment, cutting her teeth on the Hays Plc Graduate Programme and more recently within the Senior Management Team of a locally based recruitment agency. With a degree in business management, she is tasked with developing an enviable employer brand for the group with a group strategy for attraction and selection from a constant pipeline of talented new applicants, as well as overseeing training, learning and development.

Vic says…

"GAS had already experienced a fantastic period of growth when I joined, and the vision and ambitions for the business, led by a passionate management team was enticing and exciting. With our focus to become an employer of choice in the local market, we used the success of the business and, most importantly the people within it, to create a strong personality and image for GAS, combining reward, progression, challenge and professionalism, washed down with a good dose of fun!  Highlights to date include the success of our recruits, the evolvement of our careers website and being part of the team achieving a national award in recognition for the success of our apprenticeship scheme."

Did you know…

In days gone by, she qualified as an open water scuba diver, and is handy in a quiz team when it comes to any 80’s music!

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