Commercial Property-To Let or Sell? That is the Question
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Do you have commercial property to let, which has been recently vacated? If so, you are in good company. Vacancy rates for commercial property have been as high as 15% in some sectors over the last couple of years, although they are now starting to drift downwards. But regionally there are stark differences.
For example, a study by the Local Data Company, released in February 2010, has reported an increasing gap between retail vacancy rates in the high streets in the South of England and the Midlands/ North of England. Wolverhampton was the worst hit town, with a vacancy rate of 24%, whereas the North East performed worst regionally, with 14% of commercial property to let vacant. The South East of England, in comparison, showed a retail vacancy rate of just 9%.
Making sure that your commercial property to let is fully tenanted by quality businesses, is, of course, vital if you want to maximise your rental income. But achieving full tenancy, by tenants of any sort, has been hard over the last few years. The commercial property market is quite tightly coupled to what is happening in the general economy- and it's no secret that the economy has been giving your tenants a beating since the credit-crunch inspired recession of the last two years.
Unfortunately, the economic outlook does look likely to remain poor for some time in the UK. The government has had to initiate swingeing cuts in order to tackle its deficit. This, inevitably, is hitting the commercial office sector, which has 20% of its space occupied by government related organisations.
But more worrying is the possibility of a double dip recession - the reining in of government spending could have knock on effects for dependent suppliers, as well as the large numbers of people employed in the public sector. That may be enough to tip us back into negative growth- and kick start further tenancy problems for those with commercial property to let - tenants may be forced to vacate premises in large numbers again.
This all adds up to a growing problem for those with a commercial property letting that is vacant - the hope of a recovery supplying a new tenant for your commercial property to let is looking increasingly unrealistic.
In this difficult scenario, perhaps a better approach to dealing with vacant commercial property to let is to look to selling the property. This would enable you to lock in the recent modest gains in capital values that the commercial property sector has seen over the last 12 months. You could pay off debts on the property, dispense with having to pass empty rates and loan interest costs and be better positioned to re-enter the market when the cycle is turning back upwards again.
SellMyCommercialProperty are in a position to help to speed up the process of such a property sale. We are a commercial property investment company, who can call upon considerable finance, and so able to buy direct from you. We can make initial assessments of your property within 48 hours, and then agree a sale quickly, for a fair market price. If you get in touch with SellMyCommercialProperty today, we can take your vacancy problem with a commercial property to let, and give you the cash ready to take advantage of the next market opportunity.
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