The world of commercial property can seem a rather daunting place at first, especially with the wide array of different options available. However, there's no denying that this kind of investment can reap great rewards, and the strong growth in this market witnessed in 2014 is predicted to continue into 2015. Hence with this is mind, here we give a brief guide to the main types of commercial property available, to help get you started.
The commercial property market can be divided into three key sectors, namely, industrial, office, and retail, and all of these are potentially available to private investors. The retail sector includes units such as shopping centres, and high street shops, whilst the office sector is mainly concerned with premises built for businesses. Finally, the industrial property sector, primarily deals with warehouses and industrial estates.
It's worth being aware that there are also a number of other smaller sectors within the commercial property market, including leisure and healthcare properties.
Retail units, such as small shops, can often be a good entry point into the commercial market. However, it’s worth bearing in mind that the retail sector was one of the hardest hit during the recession. Despite this, there are plenty of signs that the market is beginning to pick up once again, and many towns across the UK are thriving. Consequently, there are a number of attractive investment opportunities out there in this sector. The key is to focus on retail units that are most likely to survive in the current market, and stand the test of time.
Industrial units can also be an ideal investment, and have experienced growing popularity of late, thanks to demand from start-up businesses. These property types, in particular, have the potential to offer easy lets, and good returns.
Whilst offices can present a greater number of challenges for individual investors, these are also worth considering. According to The Telegraph, properties in this sector tend to come in larger units, which typically makes them more expensive. Interestingly, the article also highlights that fact that many investors are also showing an increasing interest in refurbishing older office buildings due to an apparent lack of Grade A office stock in some cities, such as Birmingham.
Here at Prideview Properties, we’re expert commercial property agents in London, and can offer you a range of commercial property opportunities in London, and across the UK too. For more information about our range of services, please don’t hesitate to contact us by giving us a call on 0208 863 8680, and a member of our knowledgeable team will be happy to help you with your enquiries.