As at the 22nd September the FTSE100 index had plummeted nearly 1,200 points (-16.5%) from its high point back in April with other indices around the world faring even worse. Compare these figures with recent research published by Investment Property Databank which shows that UK commercial property investment continues to show positive growth (1% in August) – in fact ‘All Property’ total returns for the 12 month period to 31st August were stated as (+15.7%) source IPD UK MPI Aug 15.
The continuing low interest rate environment, improving occupational market and potential returns are attracting an increasing level of interest in commercial real estate investment from private investors, according to Worthing based commercial property specialists Brierley & Coe. With high prices and keen yields in and around the major cities investors are looking for better value in the provinces.
Brierley and Coe are currently marketing a modern high quality office investment at Yeoman Gate. The property of 2,060 sq.ft was built in 2007, has parking for six cars and is let to three tenants currently producing a gross income of c£39,000pa. They are seeking £400,000 plus VAT for the property which will show an investor an attractive net income yield of c7.6% after costs. Full details are available on our website www.brierleyandcoe.co.uk
Although July and August are traditionally quiet in the commercial property market Brierley & Coe report that there have been a series of deals concluded over the summer including the leasing of modern office suites at Yeoman Gate (1800sq.ft) to vehicle finance company OSV and at Capella House next to Worthing Station which has been let to an international security company.
In addition industrial property at the Tokar Industrial Park Walberton, Brookside Ave Rustington and The Vinery nr Arundel has been leased with further transactions agreed through the summer on the leasing of a further 50,000sq.ft of office and industrial space across the area.
‘we are seeing a continued shortage of good quality industrial accommodation as a result of current take up and are very keen to capitalise on these levels of demand by sourcing more quality instructions’ says Paul Brierley, Director at Brierley & Coe.