Commercial Investment Property For Sale
There is no shortage of investment types on the market today, if looking for commercial investment property for sale in the United Kingdom or indeed around the world there are certain traits to be looking out for. FJP Investment highlights certain aspects of the commercial property scene that you should consider.
Retail Investments for sale
Commercial Property is often seen as an attractive proposition because of the nature of the asset. Holding a tangible asset within the portfolio offers security as well as protection against currency fluctuations or even the up/down behaviour that comes with the stock market and commodities.
In the United Kingdom retail investments are very popular and have proven themselves time and time again to provide a solid income for the property owner. This niche market is not without it’s pitfalls, much of the retail market is increasingly going on-line and with that the retail market is having to innovate. Though that being said, all over the world a retail shop is still considered a solid source of revenue providing the right price is paid along with the right location.
Finding retail investments is not too difficult, with a multitude of brokers around today this specialist area is backed up with specialist market research.
Commercial Property Auctions
One of the more popular methods used by commercial property investors is to go to the auctions. Firstly, they will find the property using a number of on-line sales tools and then more often than not attend on the day of the auction and if the price is right, place a bid for said property.
This is an interesting tactic and so long as the research is done and the pricing is right you can find yourself in a winning position. Some examples of commercial property auctions are Savills, Strettons or Acuitus.
Commercial Property Prices
An interesting report made available by the Bank of England provides interesting reading into commercial property and financial stability in the United Kingdom. It is said that the Commercial Property sector has shown signs of resilience over the many years.
We encourage you to spend some time reading the report.
The values of commercial property in the UK have been rising fast and with that rents are also high. Yields can be seen anywhere between 5% and 12% as the norm. The slowdown in construction projects during the recession has resulted in an under supply of commercial assets made available to the market.
Back in 2007 when the recession hit, savers were pulling out of commercial real estate funds at a rapid rate. Fast forward to today and we seem to have turned the corner with the market sentiments pointing towards a buy signal.
Commercial Property for Lease
When buying leasehold property it means you own the property but not the land it sits on. For example you may own an apartment on a 100 year lease which means that once the 100 years is up the ownership of the property will revert back to the landowner. Also typically common with leasehold is you will pay an annual fee to a managing agent of the lease.
The leasehold property land remains the property of the landlord whom is commonly known as the “leaseholder”. Investors shouldn’t be put off by purchasing commercial property for lease since anything over 100 years is typically looked at as good as freehold in the banks eyes.
It is possible to extend a lease with negotiation being successful with the leaseholder.
Find commercial investment property for sale through our dedicated sales page: https://www.fjpinvestment.co.uk/investments/