Commercialisation can boost landlords income by up to 10pc
Astute landlords with retail assets or assets with a very high footfall can achieve between 2pc and 10pc of the total rent roll from a range of commercialisation activities, a Dublin property conference was told recently.
"Commercialisation can add value for all property stakeholders -- asset managers, retailers and shoppers by introducing specialty leasing, pop up shops, temporary leasings, revenue generating opportunities, brand activity, promotions and corporate partners," explained Byron Lewis, managing director of Lewis Commercialisation, at the national conference of the Irish Property & Facility Management Association.
In the UK, the market is estimated to be worth approximately £250 million annually. It has risen from just £10 million in 2001 and will provide shopping centre owners with an income of about £250 million in 2012.
Vincent Hickey, IPFMA vice-chairman, said that expectations of property asset owners demand that greater efficiencies be achieved, cost savings made and innovative solutions be found.
Dawson Stelfox, chairman of Consarc Design Group and director of Consarc Conservation, told delegates that, indeed, old buildings can be made to be 'green' buildings.
"There is a strong tendency amongst building owners, managers and property professionals to regard old and historic buildings as expensive to run, maintain and operate, low in energy efficiency, damp cold and draughty", resulting in neglect, disuse and decay of the buildings, the loss of cultural and architectural heritage and the degeneration of communities.
"The alternative view is that it is perfectly possible to carefully upgrade (retrofit) existing buildings to modern energy efficiency expectations, whilst retaining their historic character and, in so doing, retain their embodied energy, avoid waste going to landfill, and keep intact the sense of community and identity which built heritage represents.
Around half of all construction spend is on refurbishment, repair, conservation and maintenance, yet the emphasis of training and education in the construction sector is on new design and construction.
The training of building professionals and contractors is not relevant to the work they will actually be doing."
Commenting on issues on the procurement of materials, he said that local stone is now being increasingly used on buildings and public landscaping works, "yet our high quality local stones are rarely used, with most stone now imported from China or India.
"Use of local stone keeps the money in the local economy and creates or protects skilled labour."