Commercial Property Lease-Vacant Property Drives the Market Down
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In the current market, when faced with a vacant commercial property, investors will find it difficult to secure a tenant. However, matters become worse when a tenant is found in that you will then need to agree and complete a commercial property lease. Ensuring that each commercial property in your portfolio is occupied by good quality tenants is essential to making certain that you, as a commercial property owner, are maximising your rental income, and so the getting the best yield on your investment. However, even achieving a fully taken up set of leases, by tenants of any sort, has become much more difficult over the last few years of strenuous market conditions.
The commercial property sector is very much tied into what is happening in the wider economy, and that has not been performing well for your tenants. Tenants for a typical commercial property lease are usually commercial businesses, subject to fluctuations in the market for their goods, as well as costs of finance. And the last two years have seen commercial enterprises hit hard- the costs of repaying loans have gone up, even as credit to finance other activities has been withdrawn. Additionally the initial credit-squeeze was followed by a severe recession that has knocked holes in the markets, and so the viability of many tenants.
Similar problems seem likely to persist in the future especially where demand for offices from government departments will fall in light of major cutbacks. Further down the road, there's the possibility of a double dip recession knocking further into tenant confidence and numbers, for the retail and industrial sectors as well. The Estate Gazette, for example, has reported Paul Rogers, at Chandler KBS , commenting on the on the RICS Confidence Survey in Wales, saying that:
"Whilst there is evidence that some tenants who have a strong core business are taking space in empty buildings, having been tempted by the incentives and deals to be had, they are few and far between and until the confidence returns the market is likely to remain as so for a while yet."
This has added up to severe problems for commercial property leasing - a large number of tenants have ceased trading, or reduced their business premise requirements, leaving many a commercial property vacant. However, it is not just the fall in demand which is a problem. A commercial property lease is difficult to agree and the deal can fail to materialize if both parties are unable to agree terms. This happens only too often today where tenant friendly leases are wanted by occupiers and landlord friendly leases are wanted by investors. If you are a commercial property owner, and have a commercial property for lease, you will almost certainly have experienced similar problems in trying to find a replacement tenant and then trying to negotiate a commercial property lease.
Is there an alternative to continuing to struggle with empty commercial property? Inevitably for many property owners, if this situation persists for too long there is the threat of being faced with foreclosure of any commercial loans taken on the property. So time is not a luxury owners can afford at the moment.
But there is indeed another route for owners with a commercial property dilemma. SellMyCommercialProperty are a commercial property investment company who have access to considerable lines of finance. We are looking for commercial premises to buy as part of our investment strategy, and can make initial assessments of your property within 48 hours. A sale can be agreed quickly, and you will get a fair market price, with no agency fees. If you get in touch with SellMyCommercialProperty today, we can take your vacant commercial property off of your hands, so there will be no need to think about finding a tenant and agreeing a commercial property lease, and leave you able to move forward with your investments.
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