Demand rises for industrial property

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According to the latest quarterly health check by the Royal Institute of Chartered Surveyor’s (RICS) 21% of survey respondents reported a rise in demand for businesses looking to rent industrial property in the final quarter of 2017. Part of this demand is due to the increase in online sales. Online retailers and logistics companies are looking for more space to store their goods.

The RICS expects capital gains on commercial property to be positive, and rents are expected to rise. Many areas, such as the East of England have a shortage of industrial property. Any investor who has property in shortage areas should have no problem finding tenants.

Industrial property has the highest demand, followed by office space. Retail property has less demand, Shop sales in the period running up to Christmas were disappointing and have made many retailers cautious about expanding. Into new locations.

The growth of online retailing has fuelled demand for well-located warehouse space within easy reach of the motorway networks.

There are plenty of commercial mortgage options available for investors who want to purchase commercial property. Of those surveyed by the RICS, 69% said that commercial property prices represented fair value for money., with only 19% believing that property was overpriced. The lack of new commercial property building in some areas has kept the prices of existing property high in these regions.

Property bought at a good price in a good location can provide reasonable returns for commercial property investors, especially in the industrial sector.

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