There are numerous reasons for commercial space to remain vacant for awkward periods of time. But not only is the lack of

income a problem, the costs and issues associated with empty commercial property such as higher insurance and security

and empty rates, make things worse.

VSM manage these difficult void periods by providing and executing bespoke strategies to both mitigate costs and where

possible, create income for landlords.

By combining the qualities of entrepreneurial spirit and professional experience, VSM have to date provided interim solutions

for over 25m sq. ft. of commercial property on behalf of pension funds, property companies and private landlords across the

UK.

We believe there’s a solution for every building.

VSM VACANT PROPERTY SOLUTIONS

Charity Hubs

A large proportion of our service is the delivery of bona fide charity occupations thereby mitigating holding costs whilst also delivering an ethical and socially responsible use. Obviously, the main reduction is on Empty Property Rates, anywhere between 80-100% in savings, but additionally Landlords can benefit from lower insurance and security costs.

Amongst the nationwide charity organisations that VSM work with, we are primary property providers to Centric Community Projects (www.centricprojects.org) who operate charity hubs in office buildings and retail premises across the UK. They currently provide space for nearly 600 charities, offering them office, exhibition, storage, meeting, rehearsal and training facilities for their operations. This is a particularly effective strategy for awkward buildings with multiple hereditaments.

Charity Exhibitions

As with Charity Occupations above, charities occupying commercial premises receive at least an 80% relief on their business rates. In addition, charities receive 100% EPR relief on their premises when they are standing empty, as long as when that premises is next in use, it is by that charity (or another charity). Centric Community Projects is presently sponsoring a number of touring exhibitions by other charities, and working with numerous universities and colleges across the country.

The resulting exhibitions and galleries are held for between one and two weeks every three months. Visual examples below.

Providing the necessary criteria are met, holding a program of charity exhibitions in empty commercial premises can deliver EPR savings in excess of 95% pa, as full relief may be granted during the periods when the premises are empty between exhibitions.

Intermittent Occupation

As an alternative method, specifically for sensitive building, VSM work with companies, such as Atelier Art www.atelierart.co.uk who operate low impact showrooms aimed at local businesses and the general public.

An occupation is typically above the 42 day threshold in order to trigger a 3 month for commercial and 6 month for industrial rates relief.

Property Guardians

Empty buildings become an easy target for squatters, vandals and thieves. Installing live-in guardians is a solution to protect against these risks.

A responsible and responsive human presence helps avoid costly repair and maintenance bills by promptly alerting property owners to any issues/risks of dilapidation or destruction in their properties. Guardians are now recognised as an acceptable and effective method of securing vacant premises and can provide up to a 90% saving of the cost of using traditional security methods.

Managed Workspace & Creative Studios

There has been a dramatic shift in the profile of office occupiers in recent years with the managed office market evolving towards Freelancers, SME’s and start-ups who prefer co – working environments. In urban environments there is constant requirement for creative studio space. Artist’s are flexible with the conditions of properties and only ask for running water, electricity and it being water tight.

VSM work in partnership with select and experienced providers who curate appropriate workspace and creative studios to provide enhanced income for landlords in buildings that otherwise would remain vacant.

Community Infrastructure Levy

The Community Infrastructure Levy (“CIL”) was introduced as an alternative to Section 106 payments as a method of raising funds from developers towards the cost of infrastructure works in a local authority area. As at August 2015, CIL charging is in place in over 100 councils in England & Wales.

Where buildings have been empty for 3 years or more prior to the grant of planning permission developers are not permitted to offset existing floorspace against their developed areas. However VSM provide solutions to overcome this potentially costly problem.

Industrial Logistics

Where appropriate VSM have a logistics department who have great experience in taking on large industrial space. All solutions are non-invasive to the property and the VSM logistics team handle all issues.

Typically, occupations are on a short term basis allowing an application for a 6 month empty property rates relief, often granted by Local Authorities. However depending on the nature of the building other options are available to landlords such as charitable use.

Ratings Audit

Using over a decade of experience and knowledge of business rates legislation we perform detailed investigations into the historical rates imposed by local councils and check that they have applied the correct rates and allowances to your company’s premises as far back as 1995.

Historical audits can apply to any property Irrespective of geographic location, industry sector and size and can also apply to properties previously occupied.

Our service is designed to be as ‘hands-off’ for you as possible and other than returning our documentation to us we do not look to involve you in the audit process itself.

VSM VACANT PROPERTY SOLUTIONS

Case Study 3: Shopping Centre Stratford-Upon-Avon

Our clients were redeveloping their shopping centre and several of the units have been left vacant whilst pre-lets are agreed for the new scheme.

VSM have installed charity and arts groups into 6 of the vacant units and have further occupiers available as other retail units fall vacant.

Annual savings for the Landlord were £149,000.

Case Study 4: Industrial Park Dartford, Kent

Working on behalf of our client we have installed art exhibitions and some charity occupiers into the vacant units on their new build warehouse & industrial estate, thereby achieving EPR savings through intermittent and charity occupations.

Annual savings for the Landlord are £197,500.

5

Case Study 1: Office Block Milton Keynes

Our clients own a large office building of some 100,000 square feet of which all but 18,000 was vacant, and awaiting to be refurbished with vacant possession but the last remaining tenant had over 2 years left on their lease.

We installed an “umbrella” charity that then shared and managed the use of the building for charitable and not for profit purposes, instituting several community projects some of which involved the local authority.

Annual savings for the Landlord were £237,000.

Case Study 2: Retail Warehouse Wembley, London

Owned by a large Plc developer, the units were not open to a traditional leases as they were being marked for a refurbishment and redevelopment of a retail park

Two vacant retail warehouses (previously MFI and Allied Carpets) have been occupied by a national charity who are using one unit for the sale of donated sports equipment and training courses whilst the other is an art gallery displaying and selling donated art works and providing ancillary studio and workspace.

Annual savings for the Landlord were £162,000.

VSM CASE STUDIES: EMPTY PROPERTY RATES

Head office 335 South Row, Milton Keynes, Bucks MK9 2FY | 01908 660 552 London office The Cube, 155 Commercial Street, London E1 6BJ | 020 3633 0073www.vacantspace.co // info@vacantspace.co