Investment property
Expert help when managing commercial property investments
Investment property solicitors
Whether you are considering investing in property for the first time or looking to build on your existing property portfolio, our commercial property experts are on hand. We’ll keep you informed with expert advice at all stages of the property investment process.
Our team can guide you through all aspects of property investment from routine portfolio management through to more complex transactions.
Our specialist, bespoke advice and plain English approach will help you to get the very best out of your investment.
Why should I invest in commercial property?
Compared to investing in residential property – which usually have lease lengths from six months to one year – the average lease length on commercial property across the UK is eight years. In London, that lengthen tor 10 to 15 years. This results in a relatively stable income for a long period of time.
In addition, there is big potential for capital gains in the commercial property sector and the leaseholder is responsible for repair and maintenance which can make it more economical to invest in commercial property.
What should I consider before investing in commercial property?
As with residential property, there are several factors you should consider before investing in commercial property.
Location
Better deals and opportunities can often be found in cities other than London. Finding the right property in the right location may give higher rental yield and greater capital growth potential.
Market trends
By keeping an eye on market trends you’ll be able to identify which locations are up-and-coming.
Type of sector
The profitability of sectors change over time. Consider the performance of retail, hospitality or office space in recent years due to online shopping, hybrid working and Brexit.
Personal experience
If you have experience in a particular commercial property sector, you’ll have a better understanding the needs of those types of tenants.
What are the different ways to invest in commercial property?
You can either purchase a property or invest in commercial property funds. The following options are available:
Direct Investment
You buy a commercial property for buy-to-let or to redevelop and sell. You can make a direct investment as an individual or with others by purchasing a share in a commercial property, typically through investment funds that offer portfolios of properties.
Direct Commercial Property Funds
You invest directly in a commercial property through an investment company which owns the building and divides it out to smaller investors.
Indirect commercial property funds
You invest in shares of property companies that are on the stock market, offering more flexibility and less need for start-up capital.
We can advise you on these options.
How much money do I need to invest in commercial property?
For smaller investors, investment funds such as unit trusts or investment trusts are the best way of getting on the commercial property market, and it is usually possible to invest a lump sum starting from around £500 in a property fund.
Unit trusts or investment trusts pay returns based on rental income and growth in value.
If you buy shares in property companies, you will get returns based on the growth in value of shares and the payment of dividends.
What yield can I expect on a commercial property investment?
Yields for commercial property investors are usually higher than for residential properties.
Residential properties usually offer a 1-3% return whereas commercial properties can yield up to 10%.
Commercial properties with the highest number of tenants typically deliver the highest yields and include student housing, office buildings, apartment complexes and storage facilities.
Why use Rothera Bray for investment property?
We help clients with all legal matters relating to investment property, including:
- Acquisitions and disposal of commercial property investments of all kinds
- Capital allowances
- Conveyancing
- Freehold and leasehold acquisitions and disposals
- Property portfolio management
- Landlord and tenant matters
Get in touch for a free, no obligation chat, whether you’re experienced investor or you’re thinking of investing for the first time.
Commercial property can be a great investment, provided that all the due diligence is done. Our team of experts will ensure that you won't have to worry about the legal of side of things.
