Commercial Property

[bigbaddom]

Hi,
Im thinking about putting some money into commercial property. Initially to rent, but then to use for a bussiness that is up and coming.
I was wondering if anyone knows what category of commercial property has the best yield.
I also wanted to know if anyone could, or knows of a site, that might be able to explain all the different categories, their usage, and what can and cant be done on, or too the premises.
Thanks in advance.
Dominic

[mutt k]

You need a copy of The Town & Country Planning (Use Classes) Order 1987. A good bedtime read if you like to live on the edge!

Briefly:
A1 - shops
A2 - Financial and professional services
A3 - Food and drink
B1 - Business, including offices and light industrial
B2 - General industrial
B8 - Storage or distribution.
C3 - Residential
D1 - Non residential institutions
D2 - Assembly and leisure

Talk to the planning department of your council about alterations

In terms of yield, the higher the figure, the more risky it is an investment. If anyone offers you anything in double figures these days, run like F**k because it probably glows in the dark. High Street retail will give you 5-6%ish, offices 6-7%ish, industrial 7-9%ish. All of this depends upon location, tenant covenant, lease terms and quality of building.

M

[Muncher]

Where are you based/looking to buy?

[bigbaddom]

Thanks for the info on where to look. had been searching yeahoo for ages.
Im looking to buy in kingston upon thames. Generally retail or storage-distribution.
Does anyone know what lock up garages come under. Storage?
Thanks for your help.
One other thing. Can anyone recomend a good estate agent in the area? especially one with a good website. As im just browing at the mo, and dont want to waste anyones time.
Dom

[rich25]

Dom, YHM

[Davel]

You can always talk to the local council's Economic Development Unit, or whatever it's now called.

They often have a file of suitable units to buy or let.

[Billsnemesis]

bigbaddom said:

Hi, Im thinking about putting some money into commercial property. Initially to rent, but then to use for a bussiness that is up and coming. I was wondering if anyone knows what category of commercial property has the best yield. I also wanted to know if anyone could, or knows of a site, that might be able to explain all the different categories, their usage, and what can and cant be done on, or too the premises. Thanks in advance. Dominic

Commercial agents will be best placed to advise on yields. I have some contacts I could introduce you to if you want to email me off line.

Although the figures quoted on this thread are a good marker there is some variation. We recently did the legal work on an auction sale and watching the other sales on the same catalogue we saw retail properties varying from below 4% to over 8% depending on location and demand.

Every deal has its risks but there are some areas in commercial property where the market is not generally as sharp as it ought to be. A client of ours took an educated gamble on a tenant not moving out at the end of its lease. The tenant renewed for ten years and by that stage the rent between purchase and renewal completely repaid our client's capital investment. Effectively they got ten year's money for nothing! There deals are out there for anyone with the money and cojones

The best advice I ever had on investment is never to put money into something I didn't understand, which is why my, limited, investments are in property.

I suggest getting into Estates Gazette and Property Week to get some information on the whole market. A lot of the information it is very technical but if you are serious about joining the market it will be important to understand the system.

I am based on central London so if you just want to chew it over let me know.

Good luck

[mutt k]

Billsnemesis said:

I am based on central London so if you just want to chew it over let me know.

Who are you with?

M

[Billsnemesis]

I have sent details off line