Savvy investors are snapping up commercial property investment opportunities more than ever before. And with leases on some units stretching to as long as 20 years, plus high rental rates and generous tax breaks, it’s not difficult to see why. However, a commercial property investment opportunity may present itself to a would-be investor in a number of different forms, such as a retail unit or office space, so make sure you have a clear idea of what you want before you begin your search. And be sure to keep an eye on the current trends – tapping into these could help maximise your return on investment.
These days, being ‘green’ is playing a major role in attracting tenants. As well as energy and conservation, buying locally and in moderation is the key to appealing to today’s potential occupants. Waste is generally frowned upon and therefore components of the building you choose to purchase should be preserved and recycled rather than simply discarded.
If you want to appeal to the eco-friendly tenants of today, the buildings needs to have been built using long lasting, low toxicity materials which require little maintenance. While opting to go ‘green’ may sound like a more costly decision, recent statistics have shown that landlords are reaping the rewards over the long term in savings and efficiencies in maintaining the property. Tenants are drawn to environmentally friendly buildings as they boast a healthier atmosphere due to the presence of non toxic materials and also simply because they want to ‘do the right thing for the environment’.
Opportunities to invest in property have received bad press of late, due to the state of the global economy. However, according to recent statistics from The Local Shopping REIT Plc, the demand for smaller retail units remains steady. This is good news for smaller commercial real estate players and REITs as it is more likely that the banks will lend to them. But it that’s not to say the bigger players aren’t scooping up commercial property opportunities.
Shrewd investors are keeping their fingers firmly on the property pulse when it comes to property investment advice and opportunities, by following media coverage from reliable sources and making enquiries in local agencies. For example, the National Asset Management Agency was recently tasked with clearing a mountain of debt amassed by property developer from Ireland and as a consequence, has launched a firesale of over 850 commercial properties across the UK and Ireland. Many of which are commercial properties available in London such as Leicester Square’s Odeon Cinema and David Daly’s Louis Vuitton building which recently made headlines when they were put into receivership. Commercial investors are now casting their eye over these and similar sites in the city.
*This page is provided for information purposes only and should not be construed as offering advice. IPIN is not licensed to give financial advice and all information provided by IPIN regarding real estate should never be treated as specific advice or regulations. This is standard practice with property investment companies as the purchase of property as an investment is not regulated by the UK or other Financial Services Authorities.