Responsible Sustainability
“If you can keep your head when all about you are losing theirs. . . Yours is the earth and everything that’s in it…” …Rudyard Kipling
While markets across all industries are in a state of stress and chaos at the moment, it is now that the true industry leaders will prove themselves as they keep sight of the business fundamentals that underpin long term profitability. Cost management is the key focus and due diligence in all business aspects is required, not just to survive but to consolidate for the future when conditions improve. The skill is to trim the sails and stay in the race.
There are restrictions on capital funds and a degree of talk about delaying projects and cutting back on capital works programs. Environmental sustainability for some businesses has taken a back seat as recovery is worked out and debt and financing options are reviewed.
To maximise return we must continue to focus on sustainability and the opportunities to advance in this area to meet future tenant and regulatory demands. The danger of short term cost cutting is that the long term positioning of the building can be compromised as the demand for sustainable, energy efficient and star rated buildings increases.
What will you do in your summer holidays?
Summer time is a great time to take stock of your business and a great time to think about and diarise some property housekeeping issues that quite often get overlooked in the bustle of normal day to day business.
However if you consider this now, you can plan to carry out some crucial housekeeping duties in January when business is traditionally quieter.
Some of the not so sexy but absolutely essential items to consider to maximise your return and minimise your cost and risk are as follows:
Property Replacement Insurance: given the sizeable increases in construction costs in recent times, have you considered whether your properties are correctly insured? Do you know what you are insuring: base building and / or fit out?
Capital Expenditure Planning: what items have you planned over the next calendar year? How will they be managed?
Maintenance: are your maintenance contracts up to date and appropriate? Are there any routine maintenance items that can be efficiently attended to in this quiet time?
Tax and asset updates: Is your base schedule correct? Have you carried out any upgrade works during the financial year to date for which you can claim either a tax write off or a future tax deduction?
Condition Audits: Do you need to create or update any condition surveys of your tenanted properties?
Tenancy Make Good: Do you have a schedule of lease expiries that will occur during the year? Are there any “repairing and make good” obligations that need to be planned with the tenant?
N&B can assist with all of the above to help you really enjoy your summer holiday.
