Commercial property refers to property that is used for business activities, for example offices. The value of commercial property was £883 billion in 2016 representing 10% of the UK’s net wealth.
Why invest in Commercial Property?
Provides a steady stream of income
Letting a commercial property can allow you receive payments from a tenant as long as they need space, which in some cases can be decades. Investors own £486 billion worth of commercial property with overseas investors now owning 29% of this total.
Commercial property makes for a sound investment as the property value will increase over time, maximising your returns.
Retail tenants and office tenants have a vested interest in maintaining their property space, because it will affect their business. As a result, commercial tenants and property owner interests are aligned, which helps the owner maintain and improve the quality of the property, and ultimately, the value of their investment.