|Real Estate Information|
Investing In Commercial Property
Why commercial property?
Compared to residential property investments, commercial property offers some key advantages:
Long-term secure cashflow -- Commercial lets normally have long lease contracts, with periods of 10 years and more not being uncommon. In addition to this, commercial property tenants are less likely to default on payments and even if the tenant goes into liquidation, the liquidator may continue paying the rent in order to stop the lease being forfeited.
Maintenance -- Commercial tenants are generally liable for the maintenance and upkeep of the property, contrasting with residential leasing, where the onus tends to be on the landlord.
Income yield -- Commercial property tends to deliver a relatively high income yield throughout the rental period. In comparison residential property investors rely on the capital value of the house increasing to generate a good return. This is fine during periods of rising property prices, but less beneficial during property slumps.
Commercial property investments have also performed well in terms of growth and stability, compared to equities and gilts over recent years.
Commercial property for the personal investor
Few personal investors will have sufficient funds to invest directly in a commercial property, however there are opportunities for indirect investment.
For the small investor, only looking to invest a couple of thousand pounds, the choices are limited to a small number of unit trusts and life funds that invest in property or buying shares in property companies, such as British Land and Slough Estates (though these are often more linked to the equities market, rather than property market performance).
Larger investors have a greater range of options available, with a number of products offering a chance to invest in geared property investments through a limited partnership structure. Often these products will require a minimum investment in the region of £25,000 to £50,000, which is invested in a single property.
A few investors will be able to buy a complete property directly, however the cost of the property is likely to be 10 or 20 times the size of a residential buy-to-let, making direct investment prohibitive to most.
Commercial property risks
In line with all investments, commercial property investment comes with its own risks:
Poor liquidity -- Compared to equities and bonds, property has poor liquidity, both in the time spent finding a buyer and making the transaction. This can be further emphasised in poor market conditions when the ability to find a buyer offering the right price will become very difficult.
Poor diversification -- The more diverse an investment portfolio, the less susceptible it will be to tough market conditions. Investing in a single property can be a risky challenge.
Market performance -- The property market is prone to cycles, as yields grow and decline depending on the level of supply and demand for commercial property. Current rental rates could decline in the future.
Sector performance -- A decline in the sector that your property services could affect your investment. For example a period of poor sales performance and market withdrawal in the retail sector could lead to the demand for small store, supermarket, department store and warehouse property to decline sharply.
What to look for when buying commercial property
Location -- the location of the property is very important and will be a major factor in determining the value of property and rental income. Easy access to transport networks is an obvious plus factor for most tenants, but consideration should also be given to future developments in the area. For example, the development of a new supermarket, might depreciate the value of small shops.
Type of building -- The requirements of tenants can change over time, with implications on the type of building they need. For example the move to open plan office space, could make older buildings with their rigid enclosed spaces redundant. Many companies also look for facilities like air conditioning and the ability to connect computer terminals through under floor wiring.
Tenant quality -- Properties whose tenants are reliable, present a low credit risk and hold a long-term lease will hold a premium value.
Market factors -- Try to identify which sectors and sub-sectors of the market will perform well in the future. The same can be said for geographic regions, which might receive future government or multi-national investment.
Don Suter is Managing Editor of the UK Property Portal (http://www.ukpropertyportal.co.uk), an online directory and magazine for UK property sales, rental, surveyors, mortgages, conveyancing, property insurance, removals, news, investment and development
Compass poaches top Houston real estate agents from John Daugherty Houston Chronicle
Real Estate â€“ December 14 Greenfield Daily Reporter
Kacyn Cheney joins ERA Team VP Real Estate | News, Sports, Jobs Evening Observer
Real Estate Newsmakers SouthCoastToday.com
Elite Sports Clubs properties sold to real estate investor BizTimes - Milwaukee Business News
Seattle's Real Estate Market Is Booming, but That Growth Poses Major Challenges for the City - seattlebusinessmag.com
Seattle's Real Estate Market Is Booming, but That Growth Poses Major Challenges for the City seattlebusinessmag.com
RE/Max's Jordan Cohen is (real estate) agent to sports stars Los Angeles Times
Meet the Real Estate Investor Who Owns 18 Properties at 26-Years-Old Black Enterprise
Analyst, Real Estate Valuation - Amherst Built In Austin
Sponsored: Real Estate Confidential: The Islander vs. Investor Struggle Martha's Vineyard Times
Real Estate Briefs | Business Charleston Post Courier
This real estate investor just bought half of the Mondrian South Beach. Itâ€™s his first hotel. - Miami Herald
This real estate investor just bought half of the Mondrian South Beach. Itâ€™s his first hotel. Miami Herald
Real estate transactions: Aztec Events renews large lease, sister company relocates to Houston - Chron
Real estate transactions: Aztec Events renews large lease, sister company relocates to Houston Chron
REAL ESTATE TRANSFERS | News, Sports, Jobs SalemNews.net
Predictions for real estate brokerage jobs and costs in 2030 Business Insider
Boris Johnson's UK Election Win: Investment Surge Predicted For UK Real Estate As Brexit Drama Recedes (For Now) - Bisnow
Boris Johnson's UK Election Win: Investment Surge Predicted For UK Real Estate As Brexit Drama Recedes (For Now) Bisnow
Our favorite real estate in Metro Louisville (PODCAST) Louisville Business First
Real estate transfers: Dec. 2-6 Toledo Blade
Who's News: Hires and promotions in residential Real Estate Weekly
A-Team join Coldwell Banker Real Estate Group KPCnews.com
Former real estate agent pleads guilty to defrauding clients Forsyth County News Online
Manitowoc, find out who's moving in and out of your neighborhood Herald Times Reporter
Real Estate â€“ December 13 Greenfield Daily Reporter
Public Record: Muskingum County Real Estate Transfers Zanesville Times Recorder
Real Estate Businessman Claims Law Firm Defrauded Him in Unethical Side Deal | New York Law Journal - Law.com
Real Estate Businessman Claims Law Firm Defrauded Him in Unethical Side Deal | New York Law Journal Law.com
Top 25 Central Ohio Residential Real Estate Transactions for August Columbus Monthly
Boston real estate tax gets closer to becoming reality Boston Herald
Sunrise Open House: Real estate options in Kailua-Kona Hawaii News Now
Real Estate Briefs: Modera Buckhead, Holbrook Decatur, Ashton Woods and more home news - Atlanta Intown
Real Estate Briefs: Modera Buckhead, Holbrook Decatur, Ashton Woods and more home news Atlanta Intown
Competition in the real estate brokerage industry: A critical review Brookings Institution
Boulder County real estate market likely stay stagnant into 2020 Boulder Daily Camera
Recent Commercial Real Estate Transactions The New York Times
What to Know About REIT Dividends | Real Estate Investments U.S. News & World Report
Frederick County house sales â€” Dec. 14 | Real Estate And Development Frederick News Post
Real Estate Platform Invites House Hunters to "Tour a Home, Be a Hero" Park Cities People
Real estate agents reveal the hottest markets for the next 10 years Business Insider
The Pipeline: Commercial real estate roundup for 12.13.19 RichmondBizSense
St. Pete real estate developer pumps profit back into the community St Pete Catalyst
Berkshire region real estate sales Nov. 24-30, 2019 | theberkshireedge.com
Changes in Value of Household Real Estate - Q3 2019 Realtor.com News
Singapore's Sovereign Wealth Fund Acquires â‚¬950 Million Logistics Real Estate In Europe - Benzinga
A real estate company surprised employees with $10 million in bonuses at a holiday party - The Washington Post
A real estate company surprised employees with $10 million in bonuses at a holiday party The Washington Post
A new real estate firm enters the Bellingham market, but it will have familiar faces - Bellingham Herald
A new real estate firm enters the Bellingham market, but it will have familiar faces Bellingham Herald
Global Legal Services (Taxation, Real Estate, Litigation, Bankruptcy, Labor/Employment, Corporate) Market Size, Share & Trends Analysis Report 2019 - 2025 - ResearchAndMarkets.com - Business Wire
Global Legal Services (Taxation, Real Estate, Litigation, Bankruptcy, Labor/Employment, Corporate) Market Size, Share & Trends Analysis Report 2019 - 2025 - ResearchAndMarkets.com Business Wire
How San Jose plans to spend funds raised by its proposed real estate property tax - The Mercury News
5 Ways To Earn Money In Real Estate Without A License Black Enterprise
Black Woman Real Estate Developer Felt Unwelcome In the Community So She Built Her Own - Black Enterprise
Black Woman Real Estate Developer Felt Unwelcome In the Community So She Built Her Own Black Enterprise
Manulife Names Canada Head of Real Estate Asset Management Commercial Property Executive
Decreased inventory for buyers in local real estate market Mercer Island Reporter
New Legislation Would Require Some Real Estate Developers TO Set Aside Apartments For Homeless | WNYC News - WNYC
New Legislation Would Require Some Real Estate Developers TO Set Aside Apartments For Homeless | WNYC News WNYC
Lachlan Murdoch buys 'Beverly Hillbillies' house for record price Los Angeles Times
Real Estate Review Friday, December 13, 2019 Davis Enterprise
Six Takeaways from ICSC New York Deal Making Conference 2019, Day Three - National Real Estate Investor
Six Takeaways from ICSC New York Deal Making Conference 2019, Day Three National Real Estate Investor
November 2019 Real Estate Transactions Cape Cod Today
Know In Which Real Estate Market to Invest U.S. News & World Report
Real Estate Round-Up: When is enough, enough? Fallbrook / Bonsall Villlage News
Syracuse.com real estate update includes $1 million waterfront vacant land in Spafford - syracuse.com
This Week in EG Real Estate: 'Build Your Dream Home' East Greenwich News
Buying and Selling Real Estate: Negotiating to Win-Win
You don't get what you deserve - you get what you negotiate for.If you've spent some time on homekeys.
Researching Property for Real Estate Investing
Much is being said lately about investments. There are many investments that one could make: stocks, notes, gold, retirement plans, etc.
Why Selling on Lease Options is Glorified Landlording
I might upset some folks with this one, but that's okay as I think it's important to get some of my experiences into the light of day. If you fully believe the hype that you won't have any landlording responsibilities by selling on a lease option, go ahead and stop here.
What to Look Out For When Buying Off Plan
Buying Off PlanIt can be difficult to decide when every deal seems to be not to be missed!There are some key things I look for when buying off plan, whether it's in the UK or abroad it makes no difference.The property must be good value now ie it compares favourably with similar properties today, and is not based on properties going up in value 10% each of next 2-3 years.
How to Choose Your Real Estate Lender
Because you need quick action when applying for a real estate purchase loan, find a lender you can access easily. A lender's quick response signifies good service to follow.
Probate & Obituary Marketing
I start my marketing with obituaries followed with probate filings and find it just another effective way to acquire property.Short of courthouse research you can go to your local library and go to the reference department and research using what is called a Polk City directory that will list if the deceased party owns real estate.
The Secret Jewel in the Mediterranean Crown
Since the Northern Cypriots famously voted 'yes' to the UN backed Annan plan for the peaceful reunification of Cyprus in 2004 the world has awoken to the secret and hidden beauty of this untouched jewel in the Mediterranean crown. Those open-minded and individual thinkers seeking elegant living, unrivalled Mediterranean-region investment property opportunities or their own hideaway are today embracing Northern Cyprus.
How to Buy Your Own Home
Buying Your First HomeBuying Your Own Home isn't nearly as complicated as some folks make it out to be. Your first step should probably be to contact a Mortgage Broker (check out the on-line Mortgage Companies on my Site -- they're a great way to quickly find out how much you qualify for, and they often have better rates than the standard Banks.
Planning for Real Estate with Estate Planning
One of the most important considerations you will need to make in regards to your real estate holdings and your estate includes tax planning. If not handled properly, your estate could end up getting hit with significant losses due to taxes after your demise.
Ten Creative Financing Techniques
Do all the creative financing techniques you hear about really work? Yes, actually. They probably have all worked somewhere for someone at least once.
Thinking About Selling Your Home?
Owning a home is the original American dream. It's the old frontier spirit, wanting to claim your own tuft of the New World.
How to Use Design Psychology to Stage Your Home for a Top-Dollar Sale
A new business venture to help home sellers, home staging, assists property owners in preparing their home for the best possible sale. Home stagers visit your home and either tell you how to redesign it or actually do the work for you.
Secrets of Making Money from Real Estate - Part 2
Leverage: With real estate, people and companies will lend you money to invest. How much real estate can you buy with $20,000? Probably between $100,000-$300,000, depending on the lender.
Personal Debt Can Disappear When You Set up a New Business
I teach students how to set up a new business name on paper and then move their personal debt into the business name.This will dramatically improve your personal credit score and help you make money as a real estate investor.
Investment Real Estate: An Inexpensive Way To Get Started
If you are considering getting involved in investment real estate, let me offer some of the amazing information available in my wealth-building system, Winning the Mortgage Game. In several parts of my system, I outline a strategy for getting started in investing in real estate, without being a landlord.
A Difference Between Appraisal, Assessment, Home Inspection
Every one should have a home inspection before purchasing any property, including new construction. You may think that's rediculous but there are too many cases that prove otherwise.
Lease Options or Rent to Own?
Finding a rent-to-own house is one of the many ways someone with bad or no credit can buy a house. You will often find them called names like lease/options, lease with option to buy, lease purchase, lease 2 purchase, rent with option to buy, rent to own, or rent to buy homes.
Coming to Las Vegas - the Las Vegas Real Estate Boom
Nobody seems to be 'Leaving Las Vegas' anymore - in fact just the opposite is true. Just as in the time of the rush Las Vegas real estate has been drawing the attention of investors and new citizens alike.
Utah Real Estate
Looking to buy real estate in Utah? The market has changed over the past few years and is going to continue to change over the next few (drastically) and here are a few things you should consider before buying any Utah real estate.First, the Olympics didn't affect the state as much as people thought it would.
No More Estate Agent Fees
Follow a few simple guidelines, and marketing your own home can be easy. And it will save you thousands.
|home | site map|
|© 2006 TIGER MEDIA|