I absolutely love commercial real estate and over the next few years, commercial real estate offers investors some of the best ways to profit from property.
I'm going to share with you four reasons why commercial property is the opportunity not to be missed.
1. Okay, reason number one: over the next year, commercial property opportunities will be in abundance.
In other words, there will be more supply of commercial property than there is demand. Of course, the newspaper headlines and the media will be fixated with big-name stores collapses, such as the arcadia group and Debenhams, and many people will think well. The high street is doomed, but that really doesn't present the whole story. You see many of those shops such as Debenhams, for example, they're, just too big. They were designed and built for selling products off shelves.
Now all that business has gone online now the thing with many of these stores that are shutting they're just too big and very difficult to repurpose to alternative uses without knocking the whole thing down.
You see the opportunity for developers, and investors is with smaller shops and uppers. You see. The COVID 19 crisis has meant that many small businesses have been pushed to the brink, and that means there are lots of smaller shops and uppers which are ripe for repurposing and by repurposing I mean converting to residential use.
You see these sort of shops and uppers the smaller shops they're too small fry for the sizeable big housing developers, and they're ideal for smaller investors, if only they know what to look at now.
2.Reason number two is, of course, the public development rights that have come into force. We essentially have more commercial property in the UK than is required.
The government knows this, and that's why they've brought in a whole bunch of permitted development rights. Now what these allow? You to do is repurpose commercial buildings to alternative uses such as residential usage, without having to go through convoluted planning permission.
There are plenty of these permitted development rights available right now and thanks to Boris' build, build, build initiative.
Even more permitted development rights are on their way in 2021.
3. Reason number three: well, the opportunity is simple: you see, commercial property is cheap per square foot, mainly when supply and demand mean that there's oversupply residential property, on the other hand, is often two or three times the value per square foot compared to commercial property, so the opportunity is simple.
If you know what he's looking for you know how to exploit the permitted development rights; then you can take cheap commercial, real estate and repurpose as much of it as possible to residential usage.
4. And number four is that there are some desirable permitted development rights which are available for smaller investors to exploit, which actually will expire 31st of July 2021. And that means the first six months of 2021 will be a little bit of a gold rush. It'll be a gold rush for savvy property investors who have clued-up of what to look for what PD rights they can apply to those properties and how how to go about repurposing those properties for maximum gain in that window of opportunity.
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