Spaciotempo is urging car dealerships to seek alternative property solutions, such as temporary car showrooms, following news that rental fees will ‘rise significantly’ over the next few months.
The advice comes from temporary building specialist Spaciotempo, following a worrying prediction from the Automotive Property Consultants that competition with other retail users will raise the average rental price back to figures last seen a decade ago. The forecast was made in the organisation’s Spring 2016 market review, before both Volkswagen and JLR committed to expanding their national networks.
Spaciotempo temporary car showrooms offer affordable growing space
Spaciotempo believes that uncompetitive rental price increases, and the rocketing price of land, is already turning car dealerships towards more affordable, and convenient temporary car showrooms, and insists that these needn’t just be viewed as interim solutions. The company, which has already provided temporary car showroom buildings for dealerships including Lookers Stirling Audi, Cooper BMW, and Robins and Day Surrey, is already preparing for an increase in requests from the motor trade over the next few months.
Scott Jameson, Managing Director of Spaciotempo, commented: “The motor trade has been struggling with rental increases over the last few years, but managed to remain resilient in the face of this, posting impressive financial results. But with increasing competition for land coming from the industrial and manufacturing sectors, the motor trade is at risk of losing out on space altogether, or having to pay prohibitive costs for land.
“Temporary building solutions can be durable options for both the short-term and the long-term. Not only are they more cost-effective than permanent solutions, but they can be installed and removed quickly and easily, providing affordable growing space. Lately, we have been supplying temporary structures to dealerships to enable them to continue to trade during large refurbishment projects, but many of our temporary buildings remain in operation for years afterwards.”
Secure and durable temporary buildings for car dealerships
Although the UK economy is showing signs of recovery from the 2008 recession, for car dealers, this has resulted in a lack of traditional dealerships as most existing property stock was sold off during the recession, or let, with few suitable new properties coming on the market. This had led to a rise in total new builds as car manufacturers look to cash in on increasing demand for new vehicles, with a record 2.6 million cars being sold throughout 2015, a 6.3% market growth according to the SMMT.
Scott Jameson added: “We are finding that more and more dealerships are turning to temporary car showrooms to give them affordable growing space. The benefit of this option is that temporary buildings are as secure as any traditional permanent structure and can be used to house £50,000 cars just as effectively as they can £5 components. They are secure, durable, and can look just as aesthetically impressive with the right design and planning.”