Commercial

Is it worth it for a small building?

Below roughly 60 units the economics get hard. It is not impossible, but be sceptical of anyone who says yes without asking.

This is the question we most often answer with a no, so it is worth setting out the reasoning rather than the conclusion.

Why size matters here

The model works by concentrating occasional needs. One drill serves a hundred households because no two of them need it on the same afternoon. With fifteen households, the same drill serves fifteen people, and the maths that makes shared ownership obviously better than individual ownership gets much thinner.

The fixed costs do not scale down

Installation, service coverage, software and the opening stock do not halve because the building did. Below a certain unit count, the recurring cost per resident stops being defensible under either operating model.

Where a small building can still work

  • High turnover. Student and serviced accommodation generate far more demand per unit than long-stay residential.
  • Several buildings nearby. A portfolio within walking distance can share a service route, which is where the fixed costs actually live.
  • A smaller footprint. A compact installation with a tighter selection changes the arithmetic more than people expect.

What to do about it

Ask a provider to show you the cost per unit and the assumed use rate, not the headline. If they will not, or if the answer arrives without a single question about your building, that tells you something.

Get this answered for your building

A proposal states which figures are contractual and which are estimates, in writing.

Request a proposal