Thursday, December 16, 2010

These Are Ways To Get The Most From Your Facility Dollars

This Business Cycle has everyone looking at all their expenses. Typically one of the largest expenses of any business is the cost of their facility. Rent or Mortgage payments coupled with taxes, utilties and even maintenance repairs is a big part of the monthly Budget.

These are some ideas if you own your commercial facility. Insulation is a good place to start. Not that long ago the Building Code only required 3" insulation in roof and walls. Compare this to the current Code of 4" on the walls and 6" on the roof. At the cost of energy to heat and cool there is a good payback on dollars spent. Recently we retrofitted an older metal building with batt insulation between the purlins held in place with metal panels underneath. Changed the look and really improved the energy efficiency. These same type savings can be realized by updating doors and windows. Another simple idea is to glue foam board insulation to overhead sectional door panels, roll-ups do not work so well. If you are looking to remodel find a Contractor who knows, understands and uses the Rehabilitation Code vs. The Standard Building Code.

If your renting carefully review your lease looking for add-on costs vs. what might be an included item somewhere else. Examples of these types of costs would be taxes, water, sewer, common area maintenance, storm water fees, etc... The Flex Space on Posterity Court includes all these costs in the base rent. As suggested above look into your energy costs. An older building will cost more to heat and cool than newer construction because of the Code requirements on insulation alone. Remember if your making a 20% return with your business every dollar saved means five dollars less must be sold. Think also about the intangibles of where you lease. Would a Showroom generate more sales? If you could keep more parts or inventory would you sell more? Meeting in your office or conference room provide an edge in selling?

So whether construction or leasing call us.