Local government is failing to explore the untapped potential of property, despite spending an estimated £2.2bn on offices last year, according to new research.
The British Council for Offices (BCO) research, carried out by the Centre for Economics and Business Research (Cebr), found that 57% of senior executives said responsibility for property is still likely to fall outside management teams.
The survey also showed that cost was the most important factor in assessing the office’s performance (73%). The BCO is calling for councils to consider the role office space also plays in performance, with only 27% of those surveyed saying they consider this when staff morale falls.
Richard Kauntze, chief executive of the BCO, said: ‘Property is a significant expenditure to UK plc, but is typically seen as no more than that. What is often overlooked is that it is also a very small proportion of the overall cost of running most businesses when contrasted with the cost of the pay roll.
‘What many businesses don’t understand is that by using property efficiently, treating it as a resource to be optimised, it can deliver tangible benefits in employee performance through increased productivity and wellbeing. Businesses shouldn’t wait until costs need to be cut before reviewing their office space – it’s important that they look at how to get the most out of it like any other expenditure. This is why we believe management boards need to recognise that property merits greater attention.’
