One of the more interesting industry metrics we pay attention to is investor interest. At the start of the year, investors were showing a bit of nervousness about taking on new properties. Fear of a commercial property downturn is thought to be the crucial factor. Five months on, little has changed. But at least we can say this much: while other investors might be less interested, we are still moving full steam ahead. We are still buying properties we believe are attractive.

What types of properties are we interested in? Let us start with retail. We are keen on acquiring takeaways, restaurants, pubs, clothes shops, electrical shops, travel agents, etc. We are interested in larger retail spaces normally leased by major high street retailers. We are also interested in car showrooms, medical centres, building society offices, and so on.

Most types of commercial properties are at least worth considering. If we genuinely believe in a particular property we come across, we do our best to offer a fair deal. The current state of the commercial property market does not deter us. Quite to the contrary, we are quite encouraged.

The Start of a Downturn

The Royal Institution of Chartered Surveyors (RICS) conducts a quarterly survey among commercial real estate investors. This past January, they released data from Q4 2022. Here is just a sampling of what the survey revealed:

• 83% reported believing a market downturn was already in progress
• 50% believe that the market downturn is just getting started
• Respondents believe the outlook for 2023 is poor
• Respondents reported higher borrowing costs as a major factor in declining interest

We should note that inflation was running at 10.5% at the time of the Q4 survey. That is more than five times the 2% target set by the Bank of England. It is also no secret that the Bank has gradually increased its main rate over the last twelve sessions.

If we are at the start of an investment downturn, prices could fall even further. It is simple. A lack of interested buyers sends prices downward. High supply and low demand just make it harder to sell. But where other investors see fear, we see opportunity.

Take a Break From Being a Landlord

The last couple of years have been tough on commercial property owners – particularly landlords. We get it. Sell My Commercial Property has dealt with the same problems that nearly every other UK landlord has faced. We have just been fortunate in that we possess the resources to weather the storm.

You may not be in that position. It could be that being a landlord is taking a heavy toll on you. You dread negotiating new leases. You are tired of tenants continually asking for longer rent-free periods. You have had enough chasing down rental payments from tenants struggling to make ends meet.

Well, we have a proposal: take a break from being a landlord by selling your commercial properties to us. Set your sales proceeds aside and wait for the market to recover. If it does soon enough, you can get back into the landlord game when conditions are better. And if not, you can live off the proceeds or invest them in something else.

Investor interest is down right now. The two big issues are inflation and the higher cost of borrowing. Both may be bad news for most investors, but not for us. Our interest in buying commercial properties has not waned. We are still looking at every opportunity that comes our way. Do you have an opportunity for us?