Your guide to commercial property | Commercial property

There’s a lot to learn about commercial real estate if you’re trying to become a savvy renter or investor. You might have heard industry jargon thrown around before, like property class and planning permission, without really understanding what it means.

Investing in commercial property can be highly rewarding, but a profitable portfolio may feel out of reach if you’re at the start of your journey. Whether you’ve got a big budget or have a modest amount to invest, getting started doesn’t need to be complicated.

As of September 2020, the property use classes run from Class B to Class F, and some classes have sub-categories (Classes A and D have been eliminated this year). The thorough classification system should make it easy for building developers to find the exact regulations for their property.

Businesses can save thousands of pounds by qualifying for R&D tax credits, but many companies in the property sector don’t even realise they’re eligible. If you’re developing new products or innovative processes, you could benefit from this tax relief.

To simplify planning procedures, the government categorised all commercial properties in the Town and Country Planning Order 1987. This legislation detailed several ‘use classes’ covering the various types of buildings used for business. Property owners and local authorities can now refer to the regulations when submitting and examining planning applications.

Investing in commercial property can be a savvy move. Leases tend to be longer than those for residential properties, with UK businesses typically renting space for around eight years. That means you could be looking at a steady income stream for a number of years.

There are a lot of qualified tenant reps to choose from, so you need to make sure you find the right one. If you work in a specialist industry or have specific requirements, it is particularly important to find a tenant rep that understands exactly what you need.

Whether you’re an investor thinking about purchasing a mixed use commercial property or a prospective tenant on the hunt for one, there are a few things you need to know before taking the plunge. Here’s our comprehensive guide to mixed use commercial properties.

Investing in commercial property can be a great way to grow your capital. But you’ll need to know what you’re doing if you’re to maximise the return. Because the property market can be unpredictable, limiting risk is key – but how exactly can you do this? Here are six steps to choosing the best commercial property.

Commercial real estate is a huge market. Most types of property can be a great investment opportunity. Commercial real estate can offer bigger financial gains than residential properties but may come with higher risks.

Business rates are a type of tax paid by most commercial properties in England and Wales. If you own a shop, pub, office, warehouse, factory, guest house or holiday rental home, it’s likely you’ll have to factor this charge into your yearly budget. Local councils send the tax bills to commercial landlords or their tenants in February or March every year.

A commercial lease is an agreement between a tenant/business and a landlord that outlines the terms and conditions of the property rental. In this blog post we’re going to explore the different types of commercial leases and who pays the property taxes – landlord or tenant?

Valuing a commercial property can be fairly straightforward, or a complex process involving the calculation of the business’ net income and other financials. It all depends on the type of method you use to reach your final figure.

Investing in commercial property is a popular way to make money in the long term. The commercial real estate market provides plenty of scope to generate an impressive return on investment.

If you’re looking to move office, the commercial lease jargon can feel overwhelming and confusing. For example, what on earth is the difference between a percentage lease and a triple net lease? However, it’s important that you have a good understanding of the different types of lease so you know exactly what you’re signing up for.

If you’re considering investing in commercial property, there are some key investment terms that you may come across, which are well worth being familiar with. Notable ones are ‘cap rate’, ‘cash flow’ and ‘cash-on-cash return’. These are analytics that investors use to calculate if a potential commercial property is worth investing in.

Silicon Roundabout, or as it’s more officially known, East London Tech City, is the government initiative that’s become Europe’s answer to Silicon Valley in California. The region is brimming with a diverse range of high-tech companies forming a concentrated technology cluster. There’s everything from small start-up businesses striving for innovation, to some of the biggest companies in the world.

Commercial real estate as an investment opportunity is an interesting proposition. However, before you embark on a property search, there are several things to think about – from the type of commercial building you want to invest in to whether you want to make the purchase solely as an investor, or as an owner-tenant. Other important considerations are location, condition of the property and flexibility for potential change of use.

As a region that has undergone – and is still undergoing – numerous regeneration projects, South London is often regarded as an ‘up and coming’ area. Here, property buyers can make a good return on their investment and benefit from the region’s rich history and diverse range of pubs, bars and restaurants. Nearby landmarks include the Imperial War Museum, Lambeth Palace, the O2 Arena, the Shard, the Tate Modern and Shakespeare’s Globe theatre.

North London is typically defined as the area from Finsbury and Clerkenwell, above the City, up to Greater London’s boundary with neighbouring Hertfordshire. It comprises districts like Barnet, Enfield, Haringey, Islington, Camden, Finsbury and Clerkenwell, but sometimes stretches further to the east to include Waltham Forest. Like many of London’s other areas, it’s quite loosely defined, but these boroughs are most commonly cited as the ‘North’.

Capital expenditure (Capex) and operational expenditure (Opex) both refer to money being paid out of your company. However, this happens in completely different ways. Capex relates to expenses your business incurs now in order to generate profit in the future – for example, investing in a new building, computers or vehicles to transport goods. Opex refers to the cost of the day-to-day running of your business – wages, utilities, rent, along with general and administrative expenses.

More than 300,000 people work in the district, with around 75% of them in the financial, legal, professional and associated business service sectors. Despite the uncertainty of Brexit, which has driven some companies to set-up additional offices in Europe, London City firmly remains at the centre of the financial world.

These days, making your building greener is not just a matter of complying with environmental or energy efficiency rules and regulations. By ensuring a building is eco-friendly and energy efficient, owners and business managers not only make the space more attractive to tenants, they can also save on costs, reduce the need for extensive future upgrades and demonstrate they’re doing their bit to help the planet.

The Internet of Things (IoT) is changing the way we live our lives, automating everything from housework and energy efficiency to security. According to trend forecasters and tech experts, the connectivity of IoT devices will have a significant impact on the commercial real estate industry, empowering property owners and managers with all the benefits this state-of-the-art technology can bring.

For many years, East London has been the younger, cooler and shabbier side of London. The last three decades have seen creative people pouring into areas like Shoreditch, Bethnal Green, Hackney and Stratford. The area is known for having some of the longest running and most well-established markets in the capital, as well as great bars, world-famous street food and restaurants.