Acquiring commercial property, such as a retail outlet, office block or small hotel, involves a whole new set of rules and behaviour compared to residential property. The initial outlay tends to be more expensive too since commercial property, such as a hotel or shop can often prove more expensive than a residential property.
There are bigger benefits however. It’s easier getting tenants to stay, for instance. That’s because commercial leases average between 10 and 15 years, with rent rises written in. This results in a more consistent income than in buy to let. There is also the possibility of investing in a limited fund, especially for larger acquisitions such as hotels or department stores.
There is, however, the matter of recent business rates to consider, which have recently been increased here in the UK. More than anything else the value and availability of commercial property is dictated by the current economic situation. It’s essential to have a specialist on hand to calculate the commercial property’s value and to have the knowledge of how best to market such as asset.
