Assistance on commercial property rentals!

[Seagull over NZ]

Bit of a long shot but does anyone know of any surveys or tables that show commercial rents as a percentage of turnover?

My company is moving offices soon and the sort of office size we need now increases our rent substantially. Just to be sure we aren't doing anything too drastic I was hoping to find some sort of report or survey that looked at rents as a percentage of turnover for various professional organisations.

Anyone have any ideas - I've tried google for about the last hour but the only things I can find relate to retail property, not offices.

Any help would be appreciated.

 

[desprateseagull]

i dont think rents are based on the company using a property- more on the value of the building itself?

 

[tedebear]

I can't find any either - have you tried the London Business School web site?

To be honest - I never calculated rent as a percentage of turnover although I'm guessing you know what your current percentage is?. I suppose it depends on the type of business you are in? I've had to produce reports before based on the cost per square foot - and knowing how many employees would fit in each square foot (sad I know) then I'd be able to compare to the proposed increase and show what the increase in cost per head was?

 

[Tricky Dicky]

I can't find any either - have you tried the London Business School web site?

To be honest - I never calculated rent as a percentage of turnover although I'm guessing you know what your current percentage is?. I suppose it depends on the type of business you are in? I've had to produce reports before based on the cost per square foot - and knowing how many employees would fit in each square foot (sad I know) then I'd be able to compare to the proposed increase and show what the increase in cost per head was?

So, how many employees did you manage to get in a square foot. Is that a bit like getting 52 students into a mini ?

 

[tedebear]

So, how many employees did you manage to get in a square foot. Is that a bit like getting 52 students into a mini ?

You've seen my old offices and how many people come out the door each day - more like 90 sardines in a tin!

 

[Buzzer]

There's a link below to the impact of business rates which may be a better indication as % of turnover.

http://www.local.dtlr.gov.uk/research/impact.htm


Try googling:

rates as a "proportion of turnover"

and you'll find lots there.

 

[Seagull over NZ]

I can't find any either - have you tried the London Business School web site?

To be honest - I never calculated rent as a percentage of turnover although I'm guessing you know what your current percentage is?. I suppose it depends on the type of business you are in? I've had to produce reports before based on the cost per square foot - and knowing how many employees would fit in each square foot (sad I know) then I'd be able to compare to the proposed increase and show what the increase in cost per head was?

Its just a yardstick really. What i want to show the directors is that the rent we are going to have to pay as a % of turnover is what it was say 3 years ago when we first started growing. We are expanding but the directors are rather shocked at the rent we are looking to pay based on our next move which doubles the sq ft we need. I'll have a look at the website you have suggested, thanks.

 

[Hatterlovesbrighton]

Its just a yardstick really. What i want to show the directors is that the rent we are going to have to pay as a % of turnover is what it was say 3 years ago when we first started growing. We are expanding but the directors are rather shocked at the rent we are looking to pay based on our next move which doubles the sq ft we need. I'll have a look at the website you have suggested, thanks.

What about getting the annual accounts of some similar organisations and checking what their expenditure was?

 

[Buzzer]

Could your bank assist in this?

If not then try the Royal institute of Chartered Surveyors or commercial property agents websites.

Also, local business network, town hall business centres etc.

 

[Seagull over NZ]

What about getting the annual accounts of some similar organisations and checking what their expenditure was?

Rental expenditure isn't normally something disclosed in annual accounts.