Commercial property or self-storage – which works better for your business?
Commercial property in Dublin is at an all-time high. According to recent research for the European Property Market Brief conducted by agents Murphy Mulhall and Gerald Eve’s pan-European alliance, Dublin places third as the most expensive office location out of 23 cities within Europe, behind Paris CBD (Central Business District) and London’s West End.
With Brexit a serious issue for business owners, many fear the impact of this decision will slow market sales and reduce the number of commercial properties available for sale.
The bi-monthly report issued from CBRE Ireland for May shows that market activity has gathered pace following a slow start to the year but that few large assets are available for sale in 2017, with fewer transactions being completed. According to Knight Frank’s Investment Insight Q1 for 2017, investment transactions had declined 36% on the comparable period last year. This all has an impact on the cost of commercial property space across the city, with demand surpassing supply and thus creating a dramatic spike in costs. Prime office and retail rents in Dublin are expected to rise by 7% – 8% this year. In fact, a report from the Society of Chartered Surveyors says prime office space and rental rates in Dublin are expected to rise by 7% – 8%, averaging €673 per sqm currently.
At this cost, many SME’s are priced out of the market. As business owners cannot afford to pay some of the highest commercial rental rates in Europe, many are caught in a catch-22 where they are prevented from company expansion and development. For many businesses, looking at the office space they currently occupy and re-working this to maximise its use for the business is one option to overcome high rental costs.
There are many benefits to businesses who avail of self-storage:
1. Free up valuable office space
The sole purpose of availing of a self-storage unit is to clear out, declutter and store away items that are not required on a regular basis. Given the premium rental rates that are standard across Dublin and Ireland currently, storing items in a cost-effective storage unit can return dividends for your business, allowing you to make the most of the space you already have available.
2. Improve staff morale and productivity
Rejuvenating an office space will inject fresh life and vitality into what may have become a stagnant working environment. Changing the areas that employees work in and making the most of these spaces, such as removing old archived files and replacing with a break-out style area, will improve staff morale and productivity, as well as making the office a nicer place to work in.
3. Peace of mind
Availing of a self-storage unit with Elephant Self Storage allows your business to store items such as furniture, equipment or files knowing that they are securely stored in a location of the highest standards. Having your items monitored and safely stored away will offer peace of mind to business owners while also allowing them to access their items as often as they need.
4. Act as a small scale distribution centre/warehouse
For many businesses who do not wish to avail of a costly warehouse and lengthy lease, self-storage can be the ideal solution to help expand sales. Whether operating an online or walk-in store, a self-storage unit will allow you to buy products in bulk, store these securely and allow the business to benefit from economies of scale.
While a shortage of traditional investment stock still prevails and the scarcity of prime retail continues to drive rental costs up across the capital, self-storage units in Dublin still remain a much more cost-effective approach. At Elephant Self Storage there are over 800 rental units available ranging in size from 1 cubic metre to 45 cubic metres in size with prices beginning from as little as €10 per week and up to €110 per week for the largest unit. (*want to confirm pricing and units are the same for 2017) The cost-saving for business owners is insurmountable.
At Elephant Self Storage, storage units can provide a cheap storage solution whether looking for long term or short-term storage. At Elephant Self Storage there is no long-term contract commitment, which gives business customers the flexibility to avail of self-storage for the period that suits their needs.
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