While much of the focus regarding the UK property sector is quite rightly shining on the housing market, many people are now starting to look towards small business offices which have emerged up and down the country over the last few years. The fact is that if the UK property economy is to be successful then this will involve a significant amount of interest in UK small businesses which will ultimately lead to more small business offices in the UK.
The reality that the working from home phenomenon has not quite materialised as many had expected is something which has not gone unnoticed amongst those looking at office properties in the UK.
Government support for small businesses
While we often see comments in the press regarding UK small businesses and the growing array of “red tape” the fact is that if you do your research you will find that many local authorities offer significant financial assistance to small businesses. The reality is that the small businesses of today could be the larger businesses of tomorrow bringing in employment and significant tax income for the authorities. As a consequence, while both national and local government investment in the small business arena will vary depending upon the economy it will always be there.
Small business offices
Many small businesses across the UK are running on relatively tight margins at this moment in time due to the economic situation. Normally this would prompt people to ask the question “Why take on the extra burden of office premises when you have the option to work from home?” but this is not quite as straightforward as you might assume.
Those who have operated their own small business will be well aware that working from home may seem attractive in principle but in practice it can be a complete nightmare. Many small business entrepreneurs prefer to keep their business life and their personal life very separate because working from home can merge these two together and increase the pressure.
Tax incentives for small business offices
It is also worth noting that many local authorities offer favourable tax incentives to those building and operating small business offices. Indeed, the chances are that in your local area there will be an array of small business centres offering relatively small office space at competitive rates. So, when you take into account the incentives for building and running small business offices as well as the potential tax savings for small business operators surely this must be a growth market of the future?
Is the economy helping?
The reality is that whether the UK economy is struggling or buoyant there will always be interest in operating a small business. We may see individuals that have lost their full-time employment with larger companies working for themselves or others looking to benefit from a buoyant economy after spotting a “niche market”. Either way there will always be demand for small business office space and companies continually looking for investors in this particular area.
The yields on small business offices will vary across the country and while the security of tenancy may not compare favourably against many of the larger businesses across the UK, it seems more and more investors are willing to take the risk.