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New data underlines commercial property market investment hot spots

As the market hears news of a record level of commercial property rent collection since the start of the pandemic, a new report has underlined the how the commercial property landscape is evolving and where investors are looking for deals.

According to new data from Remit Consulting, the amount of rent collected from tenants by commercial property landlords has reached its highest level since the spring of 2020. The upturn is attributed predominantly to the easing of lockdowns and the impact that this move is having on businesses.

At the same time, a new report from EG has highlighted the growing attractiveness of the industrial sector, which it says has come out of the pandemic on top in terms of interest from investors. Integral to this development is the acceleration of the trend for online shopping and the increased demand for warehousing, logistics and distribution facilities that this has created.

Retail space rebounding but with a new look?

Notably, the report has also identified a rebound in interest in the retail sector. While the reopening of the economy is clearly playing a part in this development, it is also worth considering how the trend for commercial to residential conversion is affecting investment.

A change in planning law has allowed retail property owners to convert the use of their properties to residential and leisure. This move has the potential to have a notable impact on the future look of high streets and has already seen a flurry of activity by landlords, including retail heavyweights John Lewis and Amazon, which have announced a series of plans to convert existing city-centre and out-of-town retail space into residential use.

Interestingly, the long-term viability of this new sector is the subject of much discussion, not least in terms of the impact on development of the gradual return of traditional shopping behaviour. That said, with COVID-19 infection rates rising again, this return may prove to very gradual, which suggests that the trend for commercial to residential conversion has plenty of life left in it yet.

Elsewhere, office space continues to be affected by the pandemic, with interest in property strongly focused in London. That said, geographically speaking, interest in other major cities is growing again as the economy and industry readjusts to post-lockdown market conditions.

Commercial property and investor finance options

Another aspect of commercial property investment that is adjusting is how investors are accessing capital to make purchases. With traditional commercial lenders remaining cautious, the flexibility of alternative finance facilities is becoming increasingly attractive for investors. This is why it is important to have a commercial loan and mortgage lender that provides access to all available funding options.

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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