As negotiations continue in Brussels for the UK to leave the European Union, a few industries find themselves in a state of flux. One of them is property, which was pretty strong pre-Brexit. However, years of continual growth have slowed significantly – recent statistics show that activity in the housing market have gone back to 2011 levels.
Housing is where the wider property market has been hit the hardest, but what about commercial property? Uncertainty about what the economy would look like in two years’ time is causing many businesses to delay decisions on moving to new premises, prompting more businesses to stay put. This is having some benefit for those seeking a new office, warehouse or factory.
The main benefit is that prices are staying static in many parts of the country. This makes it easier for businesses to budget for a new home, temporary or permanent. There are parts of the country where demand for commercial property from investors is buoyant. From January to July 2017, investment in commercial property in London topped a staggering £11bn.
London is typically more expensive than any other part of the UK for industrial units and office spaces, as is the case with residential ones. The main reason why is because London accounts for a large proportion of the UK’s economic activity and will continue to do so, whatever happens by 2019.
That being said, it is still possible to find a bargain by shopping around. Looking for industrial units to let with LCP Properties will give businesses a fair idea of what to expect for their money. A visit to different units will also give would-be owners a better handle on what they actually need, from parking space to vehicle access.
Good News for Investors?
Demand for industrial properties has outstripped supply for the past five years. This is in stark contrast to retail properties, whilst the figures for office space lies somewhere in between. For investors, this suggests that there will be no shortage of customers coming to them should they put their money into units, warehouses and the like.
A plateau in prices has been forecast by some experts, with one influential voice in the commercial property sphere speaking of a ‘return to normality’. Should this happen, customers seem likely to benefit in the long run, wherever they choose to let a property. Paying close attention to prices in different regions is advisable for investors and tenants alike.