Three Reasons for Investing in Commercial Property

By Tuesday, March 8, 2016 0 No tags Permalink

Investing in property is undoubtedly a big decision, and as such it’s important to compare and analyse the costs and benefits to help you reap rewards in the long-term. The below are the three most notable reasons why a commercial investment is an excellent way manage your assets, taking a look at the types of property on offer.

Longer Lease

Overseas in the US, a typical lease will be much shorter than in the UK where it is not uncommon for a lease’s term to be between 10 and 15 years. This length of time ensures the property is viable and lucrative for lending, investing and development.

More Options for Investment

Typically, fees for the lease of an office block will be subject to change with the markets. Data and statistics are available to aid in the comparison of costings for specific areas and building types which kicks off the process of deciding what type of commercial property in which to invest. The below is a selection of a few categories of properties you can make your investment in:

  • Retail – Naturally, shops, shopping complexes and centres make up this category.
  • Office complexes – whether serviced or un-serviced, offices make a sound investment, especially in newly gentrified or ‘up and coming’ areas that have benefited from new business.
  • Industrial property – this includes warehouses, distribution centres, factories and garages.
  • Land – undeveloped, greenfield and brownfield sites make excellent development opportunities.
  • Miscellaneous – this category comprises of enterprises such as medical and healthcare facilities, hotels and hospitality, any other non-residential building.

Security

Financial security is a very good reason to invest in this type of property. As mentioned earlier, your income will be assured for a long period of time at a set rate – this offers more pay-out when compared to that of share investment. The turmoil of the residential market is more or less left behind with commercial property as it is not subject to so many factors. Along with the reliability of investing commercially, the initial cost can be high. High quality real estate companies such as GVA Worldwide can provide leading commercial insight if you want to ensure your asset security to make the most out of a large investment.

The smart way of managing the risks to your assets is to go through established realty experts who know the market inside-out; it may not have the risks associated with residential property, but as with all investments, risk is not eliminated entirely. After a large financial outlay, you’ll want to be getting worthwhile yield.

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