For councils – a win-win solution to costly ‘empty spaces’

Across the UK, a growing number of councils are counting the various costs of having their commercial properties sit empty.

Quite apart from the ’empty rates’ bill faced by the Estates dept, there are the increased risks of vandalism and the higher insurance costs… not to mention the negative repercussions of having a ‘dead’ community space.

Those councils who have adopted ASTOP’s charity-led option are witnessing a number of significant positive benefits for multiple stakeholders – both financially and socially.

“As the Property Manager acting on behalf of Southend-on-sea City Council, we put forward the idea of ASTOP and their charity-led empty rates mitigation, because we know it’s an approach that works. The area has been enlivened by the trading and the increased footfall.”

Sam ShoresProperty Manager, Savills

“We are pleased to have assisted so many different charities to go from strength to strength, by giving them a new home.”

Sarah MolloyPark Manager - Croxley Park (Watford Council owned)

“The charitable letting gives us the flexibility we need… and the council is now making a net saving.”

Peter Scarlett Estates Dept., Dorset County Council

Here are seven of the ways in which this charity-led solution serves your council and the wider community:

New vibrancy, increased footfall

A deserted empty space – office or retail – can have negative social and financial repercussions.

Reduced costs and risks

Immediate occupancy helps avoid multiple costs – from empty rates to unnoticed leaks

Easier to attract paying tenants

Our council landlords regularly report an enhanced capacity to attract paying tenants.

Unexpected flexibility

ASTOP’s maximum notice period of one month means fast-moving charity tenants can move in – and out – when it best serves the landlord.

Vital charity support

A temporary rent-free space transforms what’s possible for a charity and those they serve.

Serving community needs

Where possible, ASTOP looks to put in place a charity tenant that serves identified local needs

Meaningful collaboration

By removing barriers between the commercial and charity sectors, new possibilities emerge.

In tandem with their property and asset managers, ASTOP’s team have overseen the ethical temporary occupation for multiple council landlords including:

The charitable letting gives us the flexibility we need… and the council is now making a net saving.”

– Peter Scarlett – Estates Dept. Dorset County Council

Case study: The transformation of an empty space in Southend-on-sea

The council’s dilemma:

When Southend-on-sea council initially purchased the shopping centre, it had many vacant units – between 30 and 30% voids. Having them sit empty meant multiple costs – in terms of high insurance costs, lower footfall and empty rates, as well as the negative social repercussions.

ASTOP’s solution:

Faced with this challenge, ASTOP found a series of charity tenants to occupy the space. “One of the charities we’ve put in place at Southend – Fishers Of Men Outreach – is run by a local pastor,” explains ASTOP founder, Shaylesh Patel. “He’s an exceptional guy – what he’s doing is such a good thing – not just for the shopping centre, but for the town and the community as a whole.” Two weeks before the tenancy was due to end, ASTOP was able to move the charity into another void, and so make way for a paying commercial tenant.

Results:

In the words of Sam Shores, the Property Manager for Savills who has been liaising with ASTOP to implement this solution: “We are in a good position now. Apart from the charity units, most of the other units that were vacant have now been let on commercial terms… part of the reason for that is because the area’s been enlivened by the trading and the increased footfall.” In addition, the council’s estates department now enjoys a significant net saving in empty property costs on these charity-activated voids, without being tied-in for long durations.

Social Impact

To date, in serving multiple council landlords, ASTOP have also transformed what’s possible for the wider community and for various charities, including the following: