Assetz® News - Small Office Units Open Commercial Property Floodgates to Amateur Investors

Small Office Units Open Commercial Property Floodgates to Amateur Investors

5th September 2005 |

Commercial property has previously been the remit of professional investors with deep pockets, but with small and inexpensive office spaces now entering the market, the floodgates to commercial property are opening to the amateur investor, reports The Property Investor Show (23-25 September, ExCel).

Individuals who have seen their yields drop in the residential buy to let sector are waking up to the fact that commercial properties such as shops, offices and workspaces have the ability to provide substantially greater returns. Previously inaccessible to the majority of investors due to the high purchase prices, commercial property is now within the reach of many due to the number of compact, affordable units coming onto the market to cater specifically for small business and freelance workers.

Property developer Bournston in a joint development with New Park Projects Ltd are launching one such development at The Property Investor Show, 'The Point' in Worksop, Nottingham. Due for completion in February 2006 and currently for sale off plan, this collection of single-storey business starter units will make an ideal first investment in the commercial sector, with potential yields of 8.5 - 9%. The smallest are just 800 sq ft and cost £108,000, ranging up to 3,250 sq ft priced at £438,750 off plan.

Bournston/New Park Projects Ltd are also launching The Point at Sleaford, another office park development with units from just 800 sq ft costing £108,000, ranging up to 5,130 sq ft priced at £692,550 off plan.

Nick Clark, Managing Director of The Property Investor Show comments:

"Small, affordable commercial units entering the marketplace is great news for amateur investors who are now able to afford a slice of the action. Commercial property has been a high performing asset class over the last few years, and has clearly moved ahead of residential as one of the few UK sectors still growing. Investors who thoroughly research the marketplace can expect to enjoy healthy yields of 7-10% and a steady growth in value. What's more, the tenants are responsible for paying for any repairs during the lease, not the landlord."

Another exhibitor, Noel Lander, Associate Partner at King Sturge adds: "People are definitely cottoning on to the potential of commercial property and owner-occupiers in particular are enthusiastic about having their pension in bricks and mortar."

In addition, syndicates offer investors the opportunity to buy more expensive, better quality property as part of a group, which will generate higher returns. Yields in the commercial sector are between 7 - 10% on average compared to 5 - 6% in the residential sector.

For further information visit The Property Investor Show website on www.propertyinvestor.co.uk

*** The Property Investor Show, to be held from Friday 23 to Sunday 25 September at the ExCeL centre in London's Docklands, will feature over 200 exhibitors specialising in all areas of property investment both in the UK and abroad as well as expert seminars and workshops.

For further information and advance booking for the Property Investor Show, visit www.propertyinvestor.co.uk