{"id":18790,"date":"2018-12-03T05:48:50","date_gmt":"2018-12-03T05:48:50","guid":{"rendered":"https:\/\/www.thehouseshop.com\/property-blog\/?p=18790"},"modified":"2018-12-03T05:53:30","modified_gmt":"2018-12-03T05:53:30","slug":"five-tips-for-successfully-investing-in-commercial-property","status":"publish","type":"post","link":"https:\/\/www.thehouseshop.com\/property-blog\/five-tips-for-successfully-investing-in-commercial-property\/","title":{"rendered":"Five tips for successfully investing in commercial property"},"content":{"rendered":"\n<!-- SEO Ultimate Plus (https:\/\/seoultimateplus.com) - Code Inserter module -->\n<script async>(function(s,u,m,o,j,v){j=u.createElement(m);v=u.getElementsByTagName(m)[0];j.async=1;j.src=o;j.dataset.sumoSiteId='b68b392479b5981b8acf46565e9fe32a0734fc21a1f7c1e60121eaa6ca1a1c64';v.parentNode.insertBefore(j,v)})(window,document,'script','\/\/load.sumo.com\/');<\/script>\n<!-- \/SEO Ultimate Plus -->\n\n<p><span style=\"font-weight: 400;\">Even in uncertain times, property is one of the safest forms of investment. Values always climb over time, so even when a market slows, you can still usually turn a healthy profit with some patience.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For many property investors, a residential portfolio is the obvious choice. It\u2019s the type of property they understand the most, and they can apply personal experience in order to improve their buildings and boost their income. However, being a residential landlord is still a competitive business and, if you\u2019re not prepared to shell out for a <a href=\"https:\/\/www.thehouseshop.com\/property-management\" title=\"Property Management\">property management<\/a> company to take care of buildings and tenants for you, it\u2019s often very hard work.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Choosing to build a commercially-focused portfolio \u2013 that is, one designed for commercial tenants \u2013 can often be an equally smart decision and provide a fantastic return on your investment with much less hands-on effort. Curious about how to make a commercial property investment work? Here are our five top tips.<\/span><\/p>\n<p><strong>1 Focus on a specific market<\/strong><\/p>\n<p><span style=\"font-weight: 400;\">Commercial property can encompass everything from <\/span><a href=\"http:\/\/www.moneyobserver.com\/how-to-invest\/how-to-invest-commercial-property-beginners-guide\"><span style=\"font-weight: 400;\">retail space and warehouses to offices and hotels<\/span><\/a><span style=\"font-weight: 400;\">. It only takes a quick glance to realise that the requirements and skill sets involved in investing and managing each type of property can differ massively, so initially focusing on one type is recommended.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Starting in an industry you have some familiarity with is a good idea &#8211; it\u2019s always easier to work with what you know. For example, if you\u2019ve worked primarily worked in offices and have a decent understanding of what tenants require, you\u2019re already in a better position than attempting to purchase a garage or high-street shop \u2013 even if these seem more lucrative from the outside. <\/span><\/p>\n<p><strong>2 Understand your tenants<\/strong><\/p>\n<p><span style=\"font-weight: 400;\">This is closely linked to the first point and reiterates the simple fact that the more you understand your tenants, the more likely you are to be successful. Consider the idea of buying residential property \u2013 you have a good idea of where you would want to live, so choosing an appealing (and profitable) location is much easier. <\/span><a href=\"https:\/\/www.thebalancesmb.com\/choosing-a-location-for-your-business-1201032\"><span style=\"font-weight: 400;\">Commercial property is the same<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Think about retail units as an example. In your hometown, you will probably already understand the most popular retail spaces based on their position within the town and the natural footfall. You already have an intrinsic knowledge of the most and least valuable spaces, but that knowledge doesn\u2019t necessarily translate to a market that appears to be more lucrative (such as London). Local knowledge can go a long way.<\/span><\/p>\n<p><strong>3 Work with a trusted surveyor<\/strong><\/p>\n<p><span style=\"font-weight: 400;\">Choose a surveyor that\u2019s experienced in the type of property you\u2019re buying and you will be able to trust them to provide you with relevant and impartial analysis on the building\u2019s condition. They should also be familiar with the geographical area so they have an existing knowledge about common local defects. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Many investors have found themselves in hot water when they\u2019ve found a \u201cbargain\u201d but have failed to get it properly surveyed. Almost inevitably, once the keys have been handed over (absolving the vendor of any responsibility), numerous problems have been uncovered. <\/span><\/p>\n<p><i><span style=\"font-weight: 400;\">\u201cThe focus is always to repair not only the side-effects of any structural defects but the root causes, leaving you with a property that is as structurally sound as it looks on the surface.\u201d <\/span><\/i><a href=\"https:\/\/timgreenwood-associates.co.uk\/services\/building-defects-analysis\/\"><i><span style=\"font-weight: 400;\">Tim Greenwood<\/span><\/i><\/a><i><span style=\"font-weight: 400;\">, Building Defects Specialists<\/span><\/i><\/p>\n<p><span style=\"font-weight: 400;\">Paying to repair a roof or rectify damp is going to significantly eat into any initial savings and future profits \u2013 all of which could be avoided by having a professional survey.<\/span><\/p>\n<p><span style=\"font-weight: 400;\"><strong><img loading=\"lazy\" class=\"alignnone size-full wp-image-18792\" src=\"https:\/\/www.thehouseshop.com\/property-blog\/wp-content\/uploads\/2018\/12\/invest-commercial-property-2.jpg\" alt=\"\" width=\"1000\" height=\"665\" \/><\/strong><\/span><\/p>\n<p><span style=\"font-weight: 400;\"><strong>4 Find an experienced solicitor<\/strong><\/span><\/p>\n<p><span style=\"font-weight: 400;\">Instructing a good solicitor will help you overcome legal issues smoothly \u2013 but working with a <\/span><i><span style=\"font-weight: 400;\">great<\/span><\/i><span style=\"font-weight: 400;\"> solicitor can prevent these headaches from ever coming up. If you can find a solicitor that has specific experience working with commercial contracts (especially in the type of property you\u2019re buying), their work will be faster and more accurate than someone without the same expertise.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The last thing you want is to be delayed for months while your solicitor tries to iron out complicated legal details with your vendor.<\/span><\/p>\n<p><span style=\"font-weight: 400;\"><strong>5<\/strong> <strong>Have an open mind<\/strong><\/span><\/p>\n<p><span style=\"font-weight: 400;\">No matter how much you plan and research, property investment is a complex process and you can never guarantee that everything is going to run perfectly. Don\u2019t put all your faith in one aspect of the investment to come good. For example, if you\u2019re planning to simply renovate the property and sell it on that\u2019s fine, but keep in mind that by the time you have completed your renovations the market may have moved on.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It\u2019s vital that you should have <\/span><a href=\"http:\/\/www.morningstar.co.uk\/uk\/news\/154814\/investing-in-commercial-property-what-you-need-to-know.aspx\"><span style=\"font-weight: 400;\">multiple options <\/span><\/a><span style=\"font-weight: 400;\">in place<\/span><span style=\"font-weight: 400;\"> so that you can mitigate potential risks. Carry out a realistic appraisal of the issues that you could face and plan for worst case scenarios so that you know your investment is always safe.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Even in uncertain times, property is one of the safest forms of investment. Values always climb over time, so even when a market slows, you can still usually turn a healthy profit with some patience. For many property investors, a<span class=\"ellipsis\">&hellip;<\/span><\/p>\n<div class=\"read-more\"><a href=\"https:\/\/www.thehouseshop.com\/property-blog\/five-tips-for-successfully-investing-in-commercial-property\/\">Read more &#8250;<\/a><\/div>\n<p><!-- end of .read-more --><\/p>\n","protected":false},"author":41,"featured_media":18791,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"wl_entities_gutenberg":"","_lmt_disableupdate":"","_lmt_disable":"","spay_email":""},"categories":[1,16],"tags":[],"wl_entity_type":[602],"modified_by":null,"_wl_alt_label":[],"jetpack_featured_media_url":"https:\/\/www.thehouseshop.com\/property-blog\/wp-content\/uploads\/2018\/12\/office-2820890_960_720.jpg","wl:entity_url":"http:\/\/data.wordlift.io\/wl0502\/post\/five_tips_for_successfully_investing_in_commercial_property","_links":{"self":[{"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/posts\/18790"}],"collection":[{"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/users\/41"}],"replies":[{"embeddable":true,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/comments?post=18790"}],"version-history":[{"count":1,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/posts\/18790\/revisions"}],"predecessor-version":[{"id":18793,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/posts\/18790\/revisions\/18793"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/media\/18791"}],"wp:attachment":[{"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/media?parent=18790"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/categories?post=18790"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/tags?post=18790"},{"taxonomy":"wl_entity_type","embeddable":true,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/wl_entity_type?post=18790"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}