When the UK voted to leave the European Union (EU) in June 2016, the repercussions were felt throughout the business community and the commercial property sector was no exception. The disarray experienced in the London commercial property markets was echoed all around the country as confidence dissipated and investors began to withdraw.
Just over a year down the line, however, commercial property is buoyant again, there is some significant investment taking place and the leasing market has been reinvigorated.
The question many are now asking themselves is, should I be investing in the commercial property market?
Trailblazing Investment and Innovation
There are two factors, in particular, that stand out when it comes to explaining why the commercial property market has recovered so quickly and so well. The first is an influx of capital from South East Asia, China and Hong Kong are eager to invest in large, premium commercial property. Meanwhile, the thirst for serviced office space appears to have become unquenchable.
The Commercial Property Gold Rush
Many are looking to capitalise on the upturn in the commercial property market, which is good news for commercial real estate advisory companies who have the expertise to handpick suitable opportunities for investors both large and small.
Investors are using advisory companies to pinpoint hotspots in the commercial property market and this is adding more momentum to the metaphorical gold rush that the sector is experiencing.
Ways to Invest in Commercial Real Estate
There are two main avenues to explore when it comes to investing in commercial property. The first involves an individual, or group, looking to go it alone, that is to say they will purchase a property and then let the building. The advantages here are that the investor has more control over their interests, however, there is a lot of work involved.
The second route is to seek out investment companies who specialise in commercial property. They will invest the money on the individuals behalf and so will have control over what happens to the capital – the advantage here, of course, is that there is far less work involved and the exposure to risk is more transparent.
The old adage “there’s no time like the present” seems oddly appropriate when discussing whether or not, at present, the climate is right to invest in the commercial property market. Many factors would appear to suggest that the time is right, as it seems that the crest of this wave has yet to break.
