The commercial property market took an absolute hammering after the financial crisis. Shops, offices and warehouses saw values fall as tenant demand dived, voids increased and banks were reluctant to lend.
The last few years has seen quite a recovery. In 2015 and 2016 there were year on year increases in commercial property sales. In 2016, sales of commercial property at auction exceeded £1bn for the first time since prices crashed in 2009.
In this article, I am going to review some of the commercial property angles and opportunities which were there to be had in 2016 and look ahead to the commercial property outlook for 2017.
All these 2016 deals were either ones we purchased ourselves or for clients, or they were ones that we researched but for whatever reason they ‘got away’. (A lot of my personal learning comes from tracking what happens to the deals that slip through my fingers.)
Wandsworth - under £200k with an 8.5% yield
In the December Allsop sale, Lot 132 was a leasehold ground floor commercial unit in Wandsworth. The property is let to a gym operator on a 15 year lease, producing a rent of £15,240pa. It sold for £177,500 which gives a gross yield of 8.59%.