Why Investing in Blue Chip Commercial Property for Sale in London is a smart choice for your money
There are many different strategies for investing in commercial property and while a brave few may want to hedge their bets with high-risk investment for the potential of high returns, in this somewhat unstable post-Brexit world, most people are looking for security. And, as far as security goes, blue chip tenanted property is a great choice for an investment with consistently solid returns.
No doubt you already have an understanding of the term “blue chip” pertaining to stable, well-established companies with solid finances who sell products or services that are generally in demand, even during tough economic times. Interestingly, the term itself is derived from gambling where the blue chip is considered to have the highest value. When talking about blue chip commercial property for sale in London, we are referring to the quality of the tenants within it as these are who make the property a blue chip investment. Unlike residential property where the tenants don’t add value to the home, commercial property becomes a more solid investment when leased long-term to a blue chip client.
These sought-after tenants come in the form of high quality national companies that have stable growth with little upheaval, despite market downturns. Usually this is due to them supplying or servicing an industry that is always in demand like supermarket chains such as Tesco or Sainsbury’s, banks like Barclays or pubs and food chains like Wetherspoons.
For investors looking at commercial property for sale in London, these types of properties are alluring as they can yield solid returns for many years, without the volatility of other investments. The benefits are easy to see: they’re renowned for paying rent on time and in full and also complying with lease terms, which means your investment nets regular, reliable returns.
“Any commercial property investor, especially those moving away from residential property, should consider a blue-chip investment for their initial investments,” says Prideview’s Nilesh Patel, ACA. “Blue-chip occupiers have established businesses, the scale to succeed in an increasingly competitive retail landscape and pay their rent on time,” he says.
At Prideview we’ve been specialising in blue chip property investment for over 30 years. We have strict criteria for what we believe makes a high-quality investment in the current market because we want to ensure we deliver our clients the best deals and the best service the market has to offer. But, as Nilesh says, clearly the Prideview team wouldn’t just recommend any investment. “The property itself matters; its immediate location, its suitability for the business in question and also its alternative uses should that tenant vacate at the end of their lease.”
Take our recent acquisition of this brand new Co-op Food in Bedford, a popular town not far from London. This former pub is situated in a residential zone, boasts 10 parking spaces and is let on a 15-year lease with minimum rental increases every five years. Our client was looking for a secure investment below £1m in an established location and this one ticked all the boxes. Best of all finance is readily available for this lot making this a solid, hassle-free investment ideal for our client.
This reputation for returns combined with the current appetite for the commercial market, and its relative stability means that there’s no better time to consider commercial property investment in London. To view some of the highest quality property deals on the market, visit our current opportunities page, or register your requirements with us here and we’ll contact you with the opportunities tailored to your investment requirements. We look forward to helping find you the best blue chip commercial property investment in London.