Take a walk to the local high street. Compared to a few years ago, they may notice many more “To Let” signs in empty shop windows.
It comes as no surprise given the number of shocks to the economic system over the last five years, ranging from COVID-19 to international conflicts, all of which have led to various consequences, such as energy price hikes, interest rate increases, and a general shift in many people's work patterns and consumer behaviour.
Vacant retail space
The total number of void private-sector commercial properties stands at approximately 165,000
According to Savills Research, the overall footfall of vacant retail space in the UK is around 14.5%, while the total number of void private sector commercial properties stands at approximately 165,000.
Additionally, an estimate of 7,000 commercial and business properties owned by Local Governments in Great Britain have been unoccupied for over 12 months.
Net Zero ambitions
Furthermore, a recent BBC article points out that business tenants are more inclined to search for smaller, newer and more energy-efficient office spaces to rent, are willing to downsize owing to hybrid working, and seek buildings that complement their Net Zero ambitions.
This might be interpreted as an indication that a number of long-standing commercial premises would become vacant in the near future, forcing owners to update and repurpose empty spaces to meet the demands of a changing market.
A costly asset that requires extra protection
Insurance companies charge higher premiums for void property and require regular security
While the property market and customer demands are shifting, some truths remain unchanged: commercial property should generate money, not drain it. However, void sites imply outgoing costs and no profit, so it only makes sense that any vacant space should be flipped as soon as possible.
Unoccupied premises can become an alluring target for squatters, vandals, thieves and trespassers, which is one of the main reasons why insurance companies charge higher premiums for void property and require regular security and fire safety checks too.
Enhanced security measures
Such properties must be protected by enhanced security measures. This often involves the installation of steel doors and screens, perimeter protection, vigilant surveillance and prompt alarm response. After all, any break-in can cause far greater financial damage than the costs of protection; and the owner is legally liable for any injuries sustained by trespassers.
Meanwhile, legit access is very much required by contractors to upgrade and renovate the site in preparation for the next business occupier. Any delays or missed visits result in further charges on an asset that is essentially nothing but another bill while vacant.
Access issues: Fetch the keys
For every contractor visit, property check or viewing, a key must be obtained offsite and then returned
A minor but, consequently, very important issue might arise when accessing a site that is unmanned 24/7. For every contractor visit, property inspection or viewing, a key must be obtained offsite and then returned.
This takes time, implies unnecessary travel and, potentially, may result in additional missed visit fees and rebooking arrangements in instances when a contractor is unable to gain entry. As a result, it may slow down the void property turnaround time.
Keyholding arrangements
Furthermore, complex keyholding arrangements can also slow down the security alarm response time. More and more security companies are moving away from the traditional keyholding model, in which keys are stored at the central location or in heavy key lockers in vans during patrols.
While reaction time is critical, time is frequently wasted collecting keys or waiting for a keyholding patrol (rather than the nearest one) to arrive on site.
Lock up and leave the keys. Securely.
Keyholding solution must be more robust than doors or other means of entry to stop opportunistic intruders
What about storing keys at the point of entry? This may be controversial, but it is a solution that has gained popularity in void property management with implementation of secure range key safes and lockboxes.
The primary concern in such an approach is security. Even though property is void, the keyholding solution must be more robust than doors or other means of entry to prevent opportunistic intruders from taking advantage of the new keyholding arrangement.
Smart key management solutions
Stuart Wheeler, Managing Director of Keynetics, a company that offers smart key management solutions with security-certified key safes, comments, “Over the years, we have developed strong relationships with the top void property management companies in the UK and Europe. These clients require a keyholding solution that enables efficient FM service provision for vacant properties while also providing a high level of security.”
“Storing keys at the point of need enables quicker alarm response times and allows approved contractors to enter the premises without any delays, but security must not be compromised; in that respect, our SentriGuard key safes are suitable for commercial properties and certified to LPS 1175 (Loss Prevention Standard) C1 and C3 security ratings, which is unrivalled by any other supplier.”
SentriGuard key management system
Stuart confirmed that in addition to security, the SentriGuard key management system is highly praised for its innovative technology. First, it incorporates a bespoke cloud-based platform that allows customers to manage access to multiple properties remotely and generate various audit reports that can also serve as a proof of service delivery.
Second, assigned individuals may gain access to premises either using the mobile app or a time-restricted code. He added, “The ability for clients to access real-time data of site visits with a solution that does not break the bank and is secure has been the key to the success here in the U.K. and now across mainland Europe.”