Your guide to commercial property | sale_commercial_property_guide

Investing in real estate can be a great way to grow your capital, but you’ll need to decide whether to join the commercial or residential sector. These two property categories are very different, and you may be more suited to one than the other.

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.

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.

The ‘Oxford-Cambridge Arc’, as it has been dubbed, connects the two cities to Bicester, Milton Keynes and Bedford, as well as 26 local authorities. The region is not only attractive for workers in the education, engineering and science sectors, but also a popular base for those commuting to London.

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.

If you’re thinking about investing in commercial real estate you’ve come to the right place. Making a real estate investment isn’t quite as complex as you’d think, and it’s known to generate some of the most impressive income streams. It’s important to remember to stay patient, carefully consider each decision and do your due diligence.

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.

Commercial properties are split into five categories: retail, industrial, office, leisure and healthcare. Due to them having very different purposes, the right location for one is unlikely to be the same for the other.

Category C properties are a great opportunity for investors – as long as they are open to risk. They tend to be over 20 years old and located in unpopular areas, so there is plenty of room for improvement and growth. But to understand the benefits of a category C property, it is important to understand how the system works, first and foremost.

Cardiff is both the capital of Wales and its largest city, hosting the country’s National Assembly and most of its national cultural institutions. A hive of commercial activity, Cardiff accounts for around 20% of Wales’ GDP, which in 2007 was around £9 billion.

Whether you're a shiny new commercial property investor or a seasoned pro, you want to do your due diligence before moving forward with an investment. Some of the questions you may have might be about the property's condition, its current cash flow and value, and the potential income.

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.

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.

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.

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.