Putting negative space to work for your business

Vacant offices, underutilised warehouses and unused parking areas have something in common: they can be put to work to create new income streams and greater profits for your business. These unused spaces are often overlooked for various reasons. Businesses may be focused on day-to-day operations and not prioritise these unused spaces, or the costs associated with repurposing or leasing may seem daunting. It can be challenging to reimagine the use of space, but 3Cube Property Solutions provides the full breakdown on how it can be done.

Boosting yields through negative space

By using every square metre possible effectively, you can ensure that you're maximising your potential income and sometimes this requires out-of-the-box thinking. For example, if your building has unused warehouse space, it could be compartmentalised and rented out as storage units. With some creative thinking, an existing building layout could be reconfigured to increase the number of rentable areas.

Even small unused areas can be monetised to improve your ROI. Perhaps the ultimate example of this comes from a US-based startup called Breather that has brought the Airbnb concept to workspaces. In an interview with Lean Startup Co., founder Julien Smith revealed that the most unusual space listed through Breather was actually a very large storage closet - and it's now a profitable meeting space.

Ways to enhance property value through strategic use of unused space

Businesses around the world have developed a myriad of ways to utilise negative space. Available spaces have been used to host events, house pop-up shops or create co-working spaces. Vacant outdoor space is being used to place billboards and digital screens for advertising purposes. Unused spaces (whether indoor or outdoor) can also be transformed into fitness centres, padel courts or yoga studios, to provide just a few examples.

There are many ways to make any co-working space that you create in your negative space stand out. Incorporating high-speed internet, printing facilities, communal lounges and kitchenettes creates a vibrant working environment that has obvious appeal for hot deskers.

Progress often requires investment, and one of the best ways to enhance your property values through unused space is to upgrade these spaces. Simple lighting upgrades, a fresh coat of paint, refinished flooring or the addition of greenery and plants can make a world of difference. Another great investment strategy is investing in tech-friendly features. Accessible power outlets and charging stations and meeting rooms kitted out with video-conferencing tools make workspaces infinitely more appealing to many businesses.

Cost VS benefit of using negative space

Whether you're creating a coworking space, installing a padel court or implementing technology upgrades, there are undoubtedly setup costs involved. The first step in conducting a cost/benefit analysis is identifying the objects of the upgrade. When you're estimating the costs of any planned upgrades, it's important to remember that construction costs are not your only expense.  Depending on the upgrades you're planning to make, architects fees and licencing costs may also need to be factored into the equation. Depending on your setup, lost rental income during the renovations may be another consideration.

In a report titled The Ultimate Guide to Optimize Commercial Space", Mike Tolj from US-based commercial real estate firm, TOLJ, provides case studies of how businesses have successfully utilised their space for maximum profitability. One of the examples cited in the report is a traditional law firm in New York that converted their private offices to shared spaces and implemented a desk-booking system for attorneys. The firm also created quiet zones for focused work.

A further example cited is a Chicago-based manufacturing company that made the most of their vertical space by installing mezzanine levels for additional office space, as well as vertical storage solutions in the warehouse. To make the workspace more appealing, they implemented a smart lighting system.

With some strategic planning and spending, negative space can become a positive asset for your business. The 3Cube Property Solutions team has decades of experience in helping businesses find and optimise real estate. Contact us today if you are looking for premises in Gauteng or the Western Cape.