Commercial property opportunities need careful research

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There are many pressures on commercial property landlords that threaten the profitability of their business. There are several ways that landlords can increase their income but they require careful research. Some sectors of the market are more profitable than others and there are many regional variations. An investor needs to look at the supply and demand ratio. If demand is high and property supply is low, higher rents can be charged. There are other supporting factors that can guide research such as employment rates. If commercial property landlords research well, they can find profitable property deals. In many regional centres such as Manchester, Leeds, Birmingham and Bristol, there is a lack of new office supply. This is partly due to many offices being converted to residential use. If an investor looks hard enough they can often find small properties that are not yet on the market that can be purchased for conversion to office spaces. Large retailers such as Woolworths and BHS have ceased trading, but not all retailers are losing money. Small, well-managed shopping centres are profitable. Spaces above shops can often be used for residential use and this can boost rental income. Many businesses are requiring better facilities in their offices. They need high speed broadband, and facilities for their staff such as food areas, fitness centres and communal lounges. Landlords that spend money on improving facilities can charge larger rents. Commercial mortgages and bridging finance are available to fund purchases and improvement work that can increase a landlords’s income.

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