commercial property for sale

1
commercial property for sale
2
Investment Property Partners is a leading
commercial property investment specialist serving
clients throughout the UK and internationally.
Our experienced commercial property team focus on
delivering exciting high quality investment
opportunities that offer significant income and
capital growth potential. Commercial property is
very much bang on trend for many investors when
it comes to investing in property. Commercial
property can provide good, solid and reliable
investment returns and is perfect for those
market savvy investors who are prepared to work
to get what they want. As with all good things,
however, there is an element of risk involved.
A decision to invest in commercial property is
not one that should be taken lightly however it
often requires significant financial outlay,
serious thought and demands a significant degree
of expertise and access to good market
intelligence. With this in mind, we would
recommend that before you decide to invest in
commercial property you carefully understand the
potential investment risks you will face, their
impact and how to manage them more effectively.
3
One things for certain though, investing in
commercial property can be highly rewarding if
done properly. Interested in Commercial Property
Investment? If youd like to learn more about
investing in commercial property and how we can
help, if youd like to receive information about
commercial property investments for sale,
including our off-market investment opportunities
or if youd like to discuss your requirements in
more detail please contact us today
Benefits of Commercial Property
Investment Investing in a commercial property can
provide a secure and impressive long-term income
stream as well as steady capital growth. For
larger private and corporate investors it can
also help to diversify your property investment
portfolio. There are many other advantages which
may whet your appetite for a journey in to the
world of commercial property investment. One of
the biggest advantages is that commercial
properties are typically let on longer lease
terms than their residential alternatives. In the
UK commercial property leases extending to twenty
and even twenty five years are not uncommon.
4
This means that your rental income is pretty much
nailed on for much longer than any other property
investment avenue. Tenants of commercial
property will also normally accept the UK custom
and practice of full repairing and insuring
leases (FRI leases) this is where the tenant
takes full responsibility for and pays all
outgoings, leaving the landlord with a clear
financial return. When it comes to commercial
property, there is also a low steady growth in
capital value, but usually a higher income in the
form of better rental returns. Rental income on
commercial properties is typically consistent and
is ideal for investors who may prefer to focus on
a regular income stream as opposed to stronger
capital growth.
5
Managing your Property Investment Risks These
advantages are just the tip of the iceberg when
it comes to commercial property investment. If
this particular area of investment appeals to you
however, you should make sure you understand how
the sector performs, what it involved and how
this all fits with your own investment
objectives. Make no mistake, it is imperative
that you know exactly what risks are involved
before you make any final decision about
investing in commercial property.
Property Market Intelligence Research First and
foremost, you should clearly establish the types
of commercial property you want to invest in and
then learn the basics.
Ask yourself What type of commercial property do
I want to invest in, will I be able to manage it
effectively, what will the likely return on my
investment be, and will this meet my
objectives? Offices, shops, industrial
buildings, warehouses and the like can all be
classed as commercial property in which to
invest.
6
With sufficient funds, you will be able to
purchase these types of property and then rent
them out to companies or individuals who, in
return will pay you a regular rental income for a
fixed or rolling term.
If youve prepared well and done your research
you should then hopefully be able to turn a
profit on the original purchase price paid for
the property with these regular rental payments,
and you may also be rewarded by some capital
growth in the value of the property. On paper it
can all seem pretty straightforward Preserving
Wealth with Property What many investors do not
realise about commercial property investment is
the fact that it has little correlation with the
day-to-day performance of stock market equities
and bonds. This means that in uncertain times and
periods of market volatility, commercial property
can actually help to preserve wealth. With this
in mind, and the promise of regular rental
payments, many investors are beginning to
recognise just what well-chosen commercial
property investments can do for them. If you fall
in to this category and believe it is something
you would like to know more about, you may want
to familiarise yourself with the practical
process of investing in the commercial property
sector.
7
Alternative Routes to Investing In Commercial
Property Other than direct investment where an
investor purchases a property to own it outright,
there are a number of alternative ways to invest
in commercial property, and each will appeal to
different investors and their investment
objectives.

• PROPERTY FUNDS

• REAL ESTATE INVESTMENT TRUSTS (REIT)

• PEER-TO-PEER INVESTING

For risk averse investors who are not keen on
taking on too much risk, investing indirectly
through an established property fund, Real Estate
Investment Trust (REIT) or even a well managed
Peer-to-Peer investment opportunity is probably a
good way to get a foot on the investment
ladder. Property funds and real estate
investment trusts are generally split into two
types a traditional bricks and mortar fund or a
property securities fund. A traditional bricks
and mortar type fund will invest in property
assets directly, whilst a property securities
fund will invest indirectly in the shares of
listed property companies.
8
In general, property funds are cheaper and
represent an easier way to gain exposure to
commercial property as an asset
class. Peer-to-Peer (P2P) lending and investing
is a more recent development and has been
successfully applied to both property investment
and property finance. Peer-to-Peer lending in
simple terms allows property companies, active
investors and property developers to borrow money
directly from a collective of individual
investors and private individuals without going
through a traditional financial intermediary such
as a bank or other traditional financial
institution. Investment returns on Peer-to-Peer
transactions can be attractive for investors
although there are additional risks which must be
carefully considered before any investment
decisions are taken. For investors willing to
put in the research, investing in commercial
property is a great opportunity to generate some
serious rewards, and whilst the path to gaining
these bonuses does require knowledge, hard work
and time, property lovers and investors with a
strong business head will certainly get a buzz
from the compelling and intriguing
journey. Always remember, the rewards are there,
but only for those investors who are prepared to
put the effort in, and at times take carefully
calculated risks.
9
Commercial Property Investment Risk Management As
with any kind of investment, you will be exposed
to an element of risk when investing in
commercial property, and there can be some
specific disadvantages associated with this form
of investment. Luckily though, many of the major
issues can be dealt with successfully if you are
prepared to do your research, get good advice and
factor into account any potential risks
preparation is a key factor to your future
success. Lease Covenant Strength Property
Location Two of the biggest considerations you
have to make when it comes to commercial property
are lease covenant strength (the financial
stability of the tenant) and location
desirability. The stronger, more financially
secure your tenant is the less chance they have
of defaulting on their rental payments or going
out of business. Location specific factors
including good tenant demand are important to the
success of your property investment, as is the
presence of a good local infrastructure including
transport and communication links, Government
backed investment and regeneration initiatives,
the availability of a skilled workforce etc.
10
On-Going Property Management Another aspect to
take in to consideration is the fact that as a
landlord/property owner you will need to
physically manage your property, your tenants,
collect rents, deal with income and expenditure,
building maintenance issues, new lettings, rent
reviews, disputes, legal issues etc. so always
be prepared to step in should anything warrant
your input. Even though you will be receiving
regular rental income and your tenants will under
a full repairing and insuring lease be
maintaining the property, you have to remember
that it is ultimately yours and so your
responsibility, so you should never expect to
reap all the rewards without having to put any
work in from time to time. On this note you may
wish to consider outsourcing the day-to-day
property management responsibilities of your
property assets to an expert team well versed in
such matters such as Investment Property
Partners property management ? Larger Capital
Investment Another potential hurdle that you may
already be aware of with regards to investing in
the commercial property sector is the amount of
money needed in the first instance. Commercial
properties are generally more expensive than
residential buy to let investment properties and
are likely to require a far larger initial
investment in the form of a cash deposit.
11
Liquidity of Commercial Property Assets Finally,
you should recognise that investing in commercial
property is a medium to longer term
investment. If you need access to your cash
quickly then commercial property investment may
not be for you. Typically, it is unlikely you
will be able to dispose of your property
investment as quickly as say a smaller, less
valuable buy to let residential property or
indeed shares in a property company, so you need
to be certain that the direct investment approach
is the right one for you. Ideally, you should
also have funds in place to prepare for such
situations. In some instances, commercial
property, especially in difficult financial
times, can take months or even years to sell on,
so be prepared for the worse and you will be
fine. Bearing all the above in mind, it is easy
to see that commercial property really does boast
plenty of exciting opportunities especially if
you prepare well and research accordingly. With
the right attitude and good professional support,
commercial properties like shops, offices,
workshops and warehouses really do have the
ability and promise to provide substantial
investment returns.
12
Expert Commercial Property Investment Solutions
As leading independent property investment
specialists Investment Property Partners offer
expert advice and support to clients across our
specialist areas of expertise helping them to
achieve their investment objectives. If you are
a property investor or property owner seeking to
acquire or dispose of commercial property assets,
or enhance the value of your existing property
portfolio contact our commercial property
investment team today to discuss how Investment
Property Partners can help you.