Commercial properties are traditionally institutional assets bought by investment funds. They can also be worthwhile for individual investors, but are often too expensive so funds can be a more accessible approach. They tend to be higher-yielding than residential properties, though there are a number of quite different types of commercial property and these can vary quite a bit. Average returns range from 4.5% for offices to 10% for high street units.

Commercial properties tend to have lower levels of volatility than many other kinds of investment, but at the same time its reliance on factors like consumer spending and job creation give you little protection against tough times in the wider economy. If you're interested in investing through a fund, look for those holding at least 40 properties and be aware that if there is ever a mass exodus of investors you may have to wait to receive your money while properties are sold off.

Specialist commercial funding is required for this type of investment. 

Six excellent reasons to get a commercial premises survey

Whether you are buying an industrial unit or simply planning to lease an office space, it can be prudent to have a commercial premises survey. Just as you wouldn’t commit to a residential property purchase without fully understanding the current condition of the building, you should never do it with a workspace. Here are six very good reasons why you need to invest in the services of a commercial premises surveyor. You don’t have the expertise to do it yourself Some business owners believe that it is enough to simply utilise their own knowledge of buildings and construction as they look around a potential premises. But even if you have building experience it’s worth noting that commercial premises are constructed from different materials from most properties. In short: you don’t know what you’re looking for. If you are going to make an informed decision then you are going to need...
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Should you consider commercial real estate?

  If you have already established an impressive residential property portfolio, you may be looking to diversify your assets, especially post-Brexit. So could commercial property investment be an option? While it’s true that there is a substantial leap in the money involved when investing in commercial versus residential, there are ways to get onto the ladder through smaller retail spaces for example, before working up to venturing into larger properties. In fact, private investors currently own an estimated 12 per cent of the commercial property in the UK. The British Property Federation notes that the value of the UK’s commercial property stock totalled£787 billion in 2014, a 15 per increase year-over-year. This can largely be attributed to the fact that around this time, the economy was well on the way to recovery, and businesses were opening doors for trade once more. Commercial property covers retail and office buildings, industrial real...
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Commercial property market in Cardiff is proving to be an attractive prospect for all

  Cardiff is continuing to grow as a city and when it comes to commercial property it is grabbing the attention of investors, developers and occupiers. Cardiff is fast becoming one of the main business centres in the UK and this has been proven by the decision for Legal & General to commit to the Central Square Scheme in the city centre which comes with a value of £400 million. Developers Speculating Developers such as JR Smart and Rightacres property had invested in the city at the right time in both the Capital Quarter and Central Square schemes and it seems as though they will be rewarded for this gamble. A large amount of space in both developments has already been taken which his excellent news for the city but it could lead to a short supply of first class accommodation although this will only last until the next phase...
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Getting Started with your New Business: Renting the Perfect Premises

When starting out with a new business it’s vital to follow a logical and methodical procedure for setting up. Finding premises is arguably the most important part of your start-up. It has to be just right for you to lay down the foundations of your business and begin to grow. Research Doing a lot of research before you make any moves is crucial. Make a list of criteria and business priorities for you; think about growth – where do you want your business to be in the next year or further. Look out for shops to let in your desired areas in person – nothing compares to first-hand viewing. Make sure you check out what property to let is available in your area to give you a few ideas and get you inspired. Come up with a property specification that encompasses the following for your upcoming business rental: Facilities Size...
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Tips and Advice: Investing in the Right Commercial Property

There’s many different reasons to invest in commercial property, it might be that you want a new premises for your company, or that you wish to add to your existing portfolio. Whatever your reasons, you’ll always want to make sure you have the right property to ensure your investment is worthwhile. As such there are also a number of aspects to think about in your search, but if you’re not certain or could use a few pointers, in this post you’ll find some useful tips and advice. Here’s what you need to know: The Right Type To start with the basics you need to look through the property markets and narrow your options down to the right property for your needs. For example, if you’re intending to turn this into a commercial rental property, or use it yourself, will it suit the target market? After all, you wouldn’t advertise a...
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