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Investing in Commercial Property

02 October

Investing in Commercial Property

The credit crunch has had a negative effect on investment in commercial property, however, it would appear that investors are beginning to look back to commercial property to generate income as it can generate a strong and stable income when other investments are not.

Although a new supply of commercial properties is anticipated to remain limited, and values remain well below the 2007 peak, there is opportunity to increase income in the rental market. The advantages of renting commercial property are numerous but include; tenants being responsible for the maintenance of the building and regular rent reviews allowing investors to increase their income in line with inflation.

The most popular route into commercial property, due to the high entry costs, is through property funds and Real Estate Investment Trusts (REITs). This allows a route in without the investor actually owning the property and also an easy way out as they only have to sell their shares and not the property itself.

With shop closures still a regular occurrence, there are plenty of empty commercial units for investment. However, investors should consider the location carefully and keep in mind that investing in a building in an area of high employment and strong economic growth should help in attracting the right tenants.

If you would like any more information about this or about any aspect of Commercial Property, please contact Matthew Rodgers on 0114 220 2167, m.rodgers@bellbuxton.co.uk or Laura Sanderson on 0114 220 2192, l.sanderson@bellbuxton.co.uk