Pharmacies cost-cutting potential

Published on: 18th August 2016

After months of consultation and despite millions of petition signatures, the Government is due to confirm any day now that funding for the community pharmacy contractual framework in England is to be cut by 6.1% from October 2016. By the time you are reading this, the announcement may well have already been made.

Kim Murray, associate partner in our lease consultancy team explores the various opportunities.

Clearly the cuts will have a major impact on the sector – the Government itself admitted up to 3,000 pharmacies could close as a result and the proposed £170m reduction in funding is due to hit every pharmacy to the tune of about £14,000. Times are set to get tougher for community pharmacies.

The debate will inevitably continue but, like any other business, in times of economic hardship the focus must now shift to cost-savings. There is no doubt that the funding cuts will be challenging and pharmacies must look for ways to streamline operations, reduce expenditure and ease the impact of funding cuts where possible.

One of the biggest opportunities to do this is in property costs. Whether they are co-located with a doctor’s surgery or in a traditional retail premises, rent is one of the single biggest costs for any pharmacy, especially when you consider the cumulative cost over the period of a five or ten year lease. And with the budget cuts set to come into force before the end of the year, it is more important than ever to make the most of rent reviews.

The most important thing for any pharmacy due to start a new lease or negotiating a rent review is to seek advice from their professional advisors; experts who know exactly how to negotiate in order to get the best possible deal. Before this latest round of funding cuts, this may not have been a priority – we know from experience many pharmacies have often agreed rent just because they can afford it within their budget, or because they think they have to take the first offer. Quite simply, this is not the case.

There are many variables that come into play for rent reviews, including the terms or duration of the lease, and location in relation to the doctors and local competition. In the current climate, the most important factor for any pharmacy is the saving that could be generated by an expert advisor over a lengthy lease period. Can you afford to ignore that cost-cutting potential?

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Lease Consultancy

Sanderson Weatherall’s Lease Consultancy team are leaders in the field. We are expert negotiators in rent and lease terms for all forms of commercial properties across the UK. Our knowledge of the property market and experience in dealing with complex tenancy agreements allows us to deliver top results for you, no matter how big or small your business is. Our understanding of business and people also means we’ll work with you to achieve the best result, without damaging your relationship with your landlord or tenant. The Lease Consultancy team are able to offer: Lease Audits We will analyse your leases and identify, critical dates and liabilities leading to the creation of a comprehensive lease database. This will simplify your processes and avoid key dates and obligations being overlooked. Lease Renewals & Restructuring We will undertake a strategic review and inspection of your property portfolio and identify opportunities to rationalise or restructure leases, and reduce your costs by reviewing future lease events and potential liabilities. Rent Reviews We act on your behalf on the negotiation of rent and lease terms to obtain the best possible outcome. Dispute Resolution Our highly experienced lease consultancy team will represent you at Court and Arbitration and have a wealth of experience in the preparation of Expert Report and Replies to Independent Experts and Arbitrators. Members of the team are also frequently appointed by the RICS to act as arbitrators, Independent Experts and Mediators. Strategic Property Due Diligence Advice We provide detailed rental advice if you are considering acquiring property or businesses with existing leasehold liabilities. Contact Us

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Sanderson Weatherall’s Lease Consultancy team are leaders in the field.

We are expert negotiators in rent and lease terms for all forms of commercial properties across the UK. Our knowledge of the property market and experience in dealing with complex tenancy agreements allows us to deliver top results for you, no matter how big or small your business is.

Our understanding of business and people also means we’ll work with you to achieve the best result, without damaging your relationship with your landlord or tenant.

The Lease Consultancy team are able to offer:

Lease Audits

We will analyse your leases and identify, critical dates and liabilities leading to the creation of a comprehensive lease database. This will simplify your processes and avoid key dates and obligations being overlooked.

Lease Renewals & Restructuring

We will undertake a strategic review and inspection of your property portfolio and identify opportunities to rationalise or restructure leases, and reduce your costs by reviewing future lease events and potential liabilities.

Rent Reviews

We act on your behalf on the negotiation of rent and lease terms to obtain the best possible outcome.

Dispute Resolution

Our highly experienced lease consultancy team will represent you at Court and Arbitration and have a wealth of experience in the preparation of Expert Report and Replies to Independent Experts and Arbitrators.

Members of the team are also frequently appointed by the RICS to act as arbitrators, Independent Experts and Mediators.

Strategic Property Due Diligence Advice

We provide detailed rental advice if you are considering acquiring property or businesses with existing leasehold liabilities.

Contact Us

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Healthcare Property Services

Our healthcare team are specialists in delivering a diverse range of property solutions across all parts of the healthcare sector. We work nationwide to support healthcare organisations with expert advice about property in your sector. We partner with GP practices, private and charitable operators, health authorities and governing bodies, and use our experience and understanding of both the property market and healthcare sector to provide you with a first class service. Specialist property solutions for the healthcare sector Whether you need advice on development and planning, your property or assets valuing, or your lease or business rates negotiating, we use our knowledge of your sector to deliver a specialst property solution that's specific to you. Contact our healthcare team and we'll analyse your needs and develop your service plan. Contact Us

Read More....

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Our healthcare team are specialists in delivering a diverse range of property solutions across all parts of the healthcare sector. We work nationwide to support healthcare organisations with expert advice about property in your sector.

We partner with GP practices, private and charitable operators, health authorities and governing bodies, and use our experience and understanding of both the property market and healthcare sector to provide you with a first class service.

Specialist property solutions for the healthcare sector

Whether you need advice on development and planning, your property or assets valuing, or your lease or business rates negotiating, we use our knowledge of your sector to deliver a specialst property solution that's specific to you.

Contact our healthcare team and we'll analyse your needs and develop your service plan.

Contact Us

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Valuation team boosted with appointment of healthcare specialist

We have recently enhanced our valuation team with the recruitment of James McKelvie, a healthcare sector expert. James McKelvie has been appointed as consultant within the valuation team and brings with him 25 years’ experience in surveying and specialist healthcare advice. The appointment sees James, who previously worked as a valuation surveyor in our Leeds office in the 1990s, bring a combination of regional and national market knowledge of the healthcare property sector to his role.

Read More....

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We have recently enhanced our valuation team with the recruitment of James McKelvie, a healthcare sector expert.

James McKelvie has been appointed as consultant within the valuation team and brings with him 25 years’ experience in surveying and specialist healthcare advice.

The appointment sees James, who previously worked as a valuation surveyor in our Leeds office in the 1990s, bring a combination of regional and national market knowledge of the healthcare property sector to his role.

[fulltext] =>

 

Commenting on his new appointment, James said: “Sanderson Weatherall is a progressive firm with an excellent reputation and I’m delighted to be returning. Its well-established office network puts the business in an ideal position to develop its healthcare valuation offer and I’m looking forward to building a dedicated team that can serve our clients nationally with specialised knowledge.”

James’s areas of expertise are loan security, company purposes and partnership agreements for specialist providers and operators of care homes, nurseries and primary medical care.

Ian Naylor, partner in our Leeds valuation team, said: “James has worked for many of the major national and regional operators and has a wealth of market knowledge. This experience, along with his reputation for personal and approachable advice, will bolster our valuation team and contribute to its continued growth in the healthcare sector.”

Contact Us

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