Many critics of the UK commercial property sector are advising investors to move their high investments away from the UK market and on to more secure markets across the globe, where long term investment will pay greater dividends.
There are of course reasons why the scene in the UK is worth sticking with and investors would be wise to keep their money in the UK, assisting historic repair and re-growth of the national economy as the World's financial institutions and economies improve.
Due to the British pound being weak at this moment in time it could have been the perfect time to invest in commercial or industrial property as there will only be growth in the future as the economies of the World continue to grow.
There are some benefits of commercial property investment in the UK that remains no matter what the state of the national or global economy at any given time.
Firstly there are always businesses that are willing to take a chance on pretty long term contracts. Longer term contracts are mutually beneficial for both tenants and landlords. It allows for some sustained level of stability for both. Business owners will be able to gradually grow their business brand and potential client base without the worry of having a short term lease that could end before any growth has been made.
Secondly a business owner is much more likely to maintain the unit or property to a high standard. This is due to their company brand and image being directly affected by the state of a property and its shop front to consumers. This makes it a much more healthy option to a property investor, especially those who have been used to investing money into residential properties.
Residential landlords have a cheaper initial outlay to purchase a property but then the long term costs and short term contracts ensure that heavy maintenance work and costs are evident from the outside, especially in the types of properties, such as student residential properties, where tenants remain in residence for a year, maybe two before moving on. Each time new tenants move in there is the need for a clean up or refitting of the property. In commercial property this is not the case most of the time, apart from the initial purchase and remodeling before the first tenants move in and begin their business.
So, as a review of commercial property investment in the UK it could be said that despite the current climate does not appear to be the best for international investors, it could be the perfect time. As growth reappears in the not too distant future it is now that the cheapest purchase and maintenance prices can be found, and that is always the bottom line for investors, purchase price.