The electricity supply can be just as important as the size of the building When viewing an industrial property, investors naturally look at the obvious features. How large is the warehouse? What is the eaves height? Is there a yard? How many loading doors are there? What rent does it produce? But one feature is…
An empty commercial building can start costing money before it earns a penny Vacant commercial property can create some of the most interesting investment opportunities. An empty warehouse, office, shop or industrial unit may offer an investor the chance to refurbish, reposition, divide, re-let or occupy the property. But vacancy also brings costs. One of…
What condition will the building be in when the tenant eventually leaves? When investors purchase a tenanted commercial property, most attention naturally falls on the income. How much rent is being paid? How long is left on the lease? Is the tenant financially strong? But there is another question that can have significant financial consequences:…
A lease expiry isn’t necessarily the end of the income When investors assess a tenanted commercial property, the remaining lease term is usually one of the headline figures. A property may be advertised as having three years, five years or ten years remaining on the lease. But what happens when that lease reaches its contractual…
Infrastructure can reshape a commercial property market Commercial property investors spend considerable time analysing buildings, tenants, leases and yields. But sometimes the biggest influence on future value is happening outside the property boundary. New roads, transport improvements, major employment sites, logistics infrastructure and regeneration projects can fundamentally change how attractive a commercial location becomes. Better…
The rent roll doesn’t always tell the full story When purchasing a commercial property investment, it is easy to focus on the headline figures: purchase price, annual rent and yield. However, another area can have a significant impact on the actual performance of an investment: the service charge. Service charges are particularly important in multi-let…
A property can be worth something very different when it is empty When investors assess commercial property, attention often focuses on the rent being received and the strength of the tenant. But there is another important valuation concept that can become highly relevant, particularly when a lease is approaching expiry or where an owner-occupier may…
Sometimes smaller spaces create bigger opportunities When investors acquire a large commercial building, the traditional approach is often to search for one tenant capable of occupying the entire property. But that isn’t always the most profitable strategy. Across many commercial property markets, particularly industrial and warehouse sectors, subdividing larger premises into smaller self-contained units can…
Diversification is one of the strongest forms of risk management Commercial property investors are constantly looking for ways to achieve reliable income while managing risk. Although large, single-let buildings can offer attractive returns, multi-let industrial estates have become increasingly popular because they spread income across multiple occupiers rather than relying on a single tenant. For…
Not every part of a commercial property gains value over time One of the biggest misconceptions in commercial property investment is that an entire property naturally becomes more valuable year after year. In reality, a commercial property is made up of two very different assets: Whilst land often appreciates over the long term because it…