We recently acquired a 28,000 sq ft multi-let office building in Coleshill in an off market deal on behalf of a Manchester based investor.
In a market where yields are currently 6-8%, the deal represents extremely good value and is further evidence of the benefits of the investment market in the region.
5 reasons to invest in commercial property in the Midlands
Sam Sutton, director at Phillips Sutton Associates, gives his 5 reasons why investing in the Midlands is a good move for those looking to expand their property portfolio.
1. The Midlands is seen as a prosperous place to invest, with a good road and rail network. It is well-connected, with good supply of labour and a quality workforce. The region has a strong rental market with good companies and offers genuine prospects for rental growth.
2. This rental growth is most pronounced in the area’s strong, established commercial areas. A lack of stock is causing a supply/demand imbalance, whilst a lack of speculative development for a number of years has helped to cause this imbalance.
3. If in doubt, opt for industrial property. Office investment depends on the offer, but there remain good opportunities to buy low capital value psf buildings and multi let asset management opportunities that will bring a good return on an investment.
4. The Midlands is a “safe” location for investment. Speculative development has returned to this area, which has had a knock on effect on the secondary market in this location, but prime good quality has been unaffected.
5. An investor can ask for higher rents for the right product. Well located, refurbished, well specified buildings should bring a higher rent. We are starting to see tenants running out of options for buildings, and more than one occupier gunning for the same building. We feel that it has turned and the market is now favouring landlords again.
So, if you are looking for opportunities to invest, consider the Midlands, there is great value to be found, if you know where to look. Of course, we do!
