Despite negative media reports, there are still plenty of investment opportunities in UK commercial property.
Some negative headlines have claimed the commercial property investment market is failing. Major high street retailers have collapsed, there is economic uncertainty because of the state of the Brexit negotiations and some commercial property sectors have slowed down. Many businesses have used company voluntary agreements (CVA) to claim rent reductions. However, there are still many profitable investment opportunities for investors.
Not all retailers have been negatively affected by the rise of online shopping. Out of town retailers that sell bulky items such as fridges, furniture and beds attract customers who want to see and try out items before buying.
Mixed use sites are particularly attractive to investors. These typically have retail, entertainment, leisure and residential property at the same location.
Though some landlords have decreased rents because of CVA agreements, many have been able to increase their rental income.
Many financial observers have claimed that commercial property prices, particularly in London, may have peaked. This has not stopped commercial property investors in central London who invested £3.8 billion in the first quarter of 2018. In some areas, prices have fallen, and this has attracted investors who know that rental yields can still be good for these less expensive properties and that property values should grow soon.
There is no shortage of finance available to investors. Commercial mortgages and bridging finance products are offered by lenders at good interest rates.