In the last few weeks, there has been a rise in industrial property transactions in many areas of Britain.

Marc De Silva, writing on the website PropertyInvestorToday.co.uk in June 2017, gave the example of a recent property auction by property auctioneers Savills in Nottingham where industrial units with a guide price of £100,000 to £125,000 were sold for £220,000.

Victor Ktori from Savills Nottingham said:

“The auction room this month saw significant activity from commercial bidders looking for investment opportunities, with a particular focus on industrial property.”

Industrial property includes warehouses and workshops. They can be financed by commercial mortgages, which are available at reasonable interest rates.

A survey by the Royal Institute of Chartered Surveyors showed that in the East Midlands, in the first quarter of 2017, industrial property outperformed retail and office property.

An estate agent in Lincolnshire, Tim Downing of Pygott & Crone, said that the county was experiencing a golden era of industrial property. He said:

“One particular developer we are working closely with is Stirlin Developments whose light industrial units are proving so popular that most are bought by investors and owner occupiers off-plan.”

Landlords hit by higher costs on buy-to-let property, perhaps caused by higher stamp duty and increases in their tax bills, are looking to diversify their portfolios. Commercial property is one alternative. The right commercial property in the right location can be profitable due to high rent yields and capital growth, and a broker can help them find the best possible deal.