In this property investing article, we’ll take a look at a niche property type within the broader property investment scene. We’ll look at whether temporary buildings are an investable asset class. This is not financial advice therefore please seek professional advice from an independent financial adviser or chartered accountant before making a personal or business investment if you feel unsure. Investing in temporary buildings carries more risk than residential property.
As the global economy expands and presents new business opportunities, companies face various challenges in keeping up with it all. There are also always uncertainties and regulation changes. Therefore, as businesses grow their operations like manufacturing and sales, they always seek to cut costs where possible. Fortunately, temporary buildings come in handy in saving costs and ensuring companies get good returns on their infrastructure investments.
Here are some reasons why temporary buildings enable users to save cost and prove to be a worthy investment:
They offer cost-effective space solutions
Cost is at the centre of most entrepreneurs‘ decisions because every penny spent affects the bottom line. The good news is that temporary buildings, and even semi-permanent structures, are far more affordable than permanent structures because they come prefabricated. All of the components of these structures are produced to predefined standards, which dramatically cuts the costs of manufacturing and construction and saves the users a huge deal.
In addition, the construction of the temporary buildings does not involve a lot of labour and takes very little time. This enables businesses to expand or move into the new structures quickly, saving rental costs and other expenses. The buildings may also be added as an extension to pre-existing structures or be stand-alone structures that enable the business to use every inch of space available.
Temporary buildings allow fast-paced construction
Besides saving costs, temporary buildings are easy to erect, providing quick solutions for businesses that want to expand their operations to take advantage of seasonal demand or short-term reduction in costs of inputs. Construction of these structures can be completed in a few weeks or even days and the building can be put to use almost immediately.
They are customisable and versatile
Another feature of temporary buildings is that they can be customised to suit their users’ needs. Although businesses can buy standard “off-the-shelf” structures, they can also order custom structures made to their specifications with the measurements and materials that will meet their specific needs. If a business needs a structure to store some sensitive items, they can specify the gauge of the cover and other special requirements like insulation.
Additionally, these structures are versatile, so they can be used in many ways, such as storerooms, manufacturing buildings, staff-working areas, and even retail space. No matter your need, Smart-Space, the leading name in semi-permanent and temporary structures in the UK, can help you get what you want. You can trust them because they have over 30 years of experience in the business and have worked with clients across various industries, offering them excellent solutions.
Temporary buildings save energy costs
If you have been looking to cut lighting and room temperature regulation costs, you may consider temporary buildings. The structures can be designed to allow in more natural light, hence significantly cutting lighting costs. Also, using them as staff working rooms will improve their productivity because natural light promotes productivity.
Furthermore, the structures can be designed to have better ventilation or maintain defined temperatures if they store special items. This means you cut air conditioning costs and get a quick storage or staff working area.
They are easily relocatable
Businesses and individuals who need to move their operations from one site to another, for example, construction firms, can find temporary buildings to be a perfect solution to their needs. Instead of building new structures or renting space at each site, the non-permanent installations can provide a room they can use and move around with.
Temporary buildings are easy to assemble and dismantle without damaging the components hence saving costs and providing great convenience and flexibility. Also, these structures can be built next to existing buildings as extensions or even as independent structures, utilizing every square inch of space available. They can also be erected on nearly any ground, so make it easy to have a building at most operational places.
They comply with building regulations and save the environment
Permanent structures pose the challenge of ensuring compliance with the building regulations, which may delay the construction and increase costs to the users. However, with temporary buildings, you may not have to deal with ensuring compliance with the building laws in your area. You are also saved the headache of complex processes to obtain planning permission. The structures come with the layout for the building and other relevant documents; thus, you can start the construction quickly and with no delays. Moreover, the buildings use environmental-friendly materials and lessen the impact of machines and human activity, thus saving the surrounding the damage experienced when building.
Are temporary buildings an investable asset class?
For a private investor looking for a healthy financial return on their capital, temporary buildings are probably not suitable. Their short-life means that a higher amount of active investment management would be needed, including identifying businesses with a need for a temporary building, negotiating a rental amount over the period, ensuring that this will be sufficient to recoup the original capital investment over the finite life of the structure. The best property investment books rarely offer insights into this asset class so it can be difficult to educate yourself on everything you need to know before investing in property.
These commercial property leases would need to be fixed term to ensure that the single-tenant would cover the total cost of the property over its life, or in the case of very mobile and universal structures, rent could be set with the expectation that a building could be used more than once, however, this is speculative.
However, if you’re a business with a decision to make as to whether to build a permanent structure or a temporary one, a temporary building could be an excellent choice. Temporary buildings are a worthy investment that saves businesses and individuals lot of money and time. You can use the services of the leading solution providers to get quality space solutions that are suitable for your needs.