Out of habit I am an ARICS. Now I am an MRICS? What does it matter? If we are
confused then so are our clients. Until they better understand the new RICS
Faculties, maybe it would be best to focus on the service we deliver to them as
the most useful reference point. After all, everybody, RICS or not, is judged by
the effectiveness of our advice.
Habit binds us all and may be at the root of my unease on occasions with the
nature of initial instructions from clients. That unease is greater when
evidence is that some property users have only limited experience of the range
of skills available from property professionals to meet perceived problems. As
long as their building is sound, well insured, cared for, and no risk to its
users what more do they need?
No point in trying to complete a list in a short piece like this, but it is
clear that despite the familiarity with that all too brief summary, it
highlights the depth to which advice is often sought.
A few years ago the RICS and CBI in conjunction with the University of Reading
sponsored Grimley to look at strategic and operational property requirements of
the manufacturing sector. Many of our clients are in this sector. A few sample
facts from that research:
Just looking at this sample, these are challenging numbers. Even if you
choose to ignore the scale of these statistics the last word in that list was
"never". Call me old-fashioned, but I fail to understand how anybody can prepare
a Balance Sheet that includes property assets without having had an appropriate
valuation of assets done at some stage. Food for thought.
OK, so this was a view of one sector. But, its findings should have dramatically
shaken up awareness of the place of the property asset in business planning and
caused many to do a stock check at least.
Habitually owners may only think about asset value when considering securing
loan finance or relocation. With interest rates low, as now, the cost of
borrowing is a less urgent issue - but all of us remember tougher times. Have
the clients forgotten?
When involved in location strategy we should steer thinking to a broader
awareness. In the same way as it is common to aim to work other capital assets
24 hours a day, why aren't property assets treated equally?
Looking wider, does the location meet present supply and market needs? Does it
represent value for money? Is the image right? Is there a more profitable use
for the site?
Equally, ageing buildings generally cost more to maintain and run than modern
buildings, but short-term thinking may mask the full picture.
How can relevant and meaningful business decisions be made if the role of all
assets is not regularly assessed and weighed? The erosion of profit caused by
incomplete decisions should worry us all on behalf of our clients. But have we
been asked?
Enlightened self-interest alone suggests we challenge our clients to break some
old habits and give the wider picture a look.