We have made it clear that we are interested in buying all sorts of commercial properties – from warehouses to medical buildings to retail space. We are interested in take-away shops, convenience stores, industrial buildings, etc. That begs a question: why should owners sell now to commercial property buyers?
There are times when market conditions work in favour of commercial property owners in the sense that holding on is more financially lucrative than selling. But the opposite is also true. Under certain conditions, holding on to a property means holding on to a money pit. Selling to a buyer with the financial resources to make things work could be the better option. In our opinion as property investors, that’s where we are now in the UK market.
Valuations Are Still Unstable
More than one economic expert has said that the UK property market has bottomed out. We’re not sure about that one, but we do know this much: property valuations are still unstable. Even if prices don’t get much lower than they are at the moment, they aren’t yet stable enough to maintain the level of confidence property owners need right now.
Selling to commercial property buyers takes that issue off the table. Owners get cash in exchange for their properties, cash they can do with as they please. They no longer need to worry about what their properties will be worth down the road.
On the other hand, what if the economic forecasts don’t get much better? What if property valuations continue to fall? Owners who choose to hang on may find themselves worse off later on. That’s not a good position to be in if the economy is already causing you problems.
Good Leases Are Getting Harder to Arrange
As commercial property buyers, we have long been interested in purchasing leased retail space. But our interest has been piqued recently by the news of so many high street retailers struggling. We have done our research. We know it is getting harder for property owners to arrange beneficial leases with retail tenants.
Retailers want to get as much as they can while giving as little as possible in return. That is the nature of business. For property owners though, leasing is turning into a nightmare. Tenants want shorter leases; they want lower rates; they want more rent-free periods built into their leases. Property owners bending over backwards to give them what they want only encourages them to keep asking for more.
Selling immediately takes care of that issue. Sell to a company like ours and be free from having to worry about bad leases. Let us deal with it. We have the financial resources to go toe-to-toe with the high street.
An Opportunity to Take a Break
As a commercial property owner yourself, you know how much of a headache your properties can be during tough economic times. So do we. From our perspective, you could stand to take a break. Selling now doesn’t mean forever leaving the property market. Quite to the contrary, you could invest your sales receipts in other opportunities and wait for the property market to rebound. Then, when you’re good and ready, you can always get back in.
In the meantime, you don’t have to deal with the hassles of late rental payments, loss of government support, and all of the other things that come along with owning commercial property in a down market.
So, have we convinced you that now is the time to sell to commercial property buyers? Let’s talk. Let us see if we can reach a deal that benefits both of us.