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Commercial property investment: opportunities for 2021

The commercial property market is continuing to battle serious headwinds, not least the impact of Covid-19, but at the same time, it is showing some resilience and displaying pockets of notable growth. With the right finance in place, there are opportunities for investors in 2021.

Like so many other industries, the commercial property investment sector had a rough ride in 2020, buffeted by the impact of the coronavirus pandemic and the extended Brexit negotiations. The arrival of the new year has by no means ushered in a new era, but the light at the end of the tunnel is getting brighter and, for the well organised, there are good investments to be made.

Office and retail property see boost in investment deals

The office and retail property sectors have been among those hardest hit over the last year, and while times remain challenging, both have witnessed positive developments in recent months. The end of 2020 witnessed a flurry of investments, notably a number in central London, and the trend has continued into 2021.

It is a bit early to start heralding a market recovery – all eyes on later in the year for this – but this activity is a boost and an indication that, for savvy investors, a good deal is out there, even in more difficult market sectors.

Large distribution warehousing and healthcare property to drive growth in 2021

Away from these sectors, key growth areas that commercial property investors should be focusing on are large distribution warehousing and healthcare property.

The wide-scale switch to online shopping is the factor behind the upturn in the former, with consumers unlikely to revert en masse to old purchasing behaviours in the post-Covid era. With regard to healthcare property, growth is set to be fuelled by ongoing interest in private hospitals and care homes, as well as rising demand in sectors such as mental health and children’s services.

Investing in commercial property in 2021 and the role of alternative finance

Despite the impact of Covid-19, there are opportunities for commercial property investors. Notably, challenging market conditions should continue to keep less experienced players away, so good deals should be easier to spot and access.

As long as investors can access finance in a timely fashion and on the right terms, they will be in a good position to exploit key commercial property market trends in the months ahead. As such, using the right commercial loan and mortgage lender will be vital.

It is critical to have a lender that is aware of and can offer you access to all available finance options. Interestingly, more and more property investors are using the services of alternative lenders to access funding, with the shift attributed to the greater flexibility and the less automated and more personalised approach that they offer.

It is clear that it will be a while before the commercial property investment market returns to anything approaching a pre-Covid state. But that said, there are clearly opportunities to be taken. With the right commercial loan and mortgage lender on hand, these deals can be made quickly and efficiently.

To find out more about A&T Business Associates services for commercial property investors, contact Tony Hedger on 01903 602211 or tony.hedger@atbusinessassociates.co.uk.

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