As more and more landlords look to diversify their portfolios, investing in commercial property is increasingly becoming a favoured option. When it comes to investing in commercial property in the UK, it is shops that dominate the market, with 70% of the commercial buy-to-let space taken up by retail. The other 30% is taken up by offices, industrial space and leisure.
Here are some of the top benefits of investing in commercial property:
– Leases tend to be longer than residential tenancies reducing the risk of void periods and high turnover rates
– Rent is higher for businesses, making it a more lucrative investment
– Unlike residential, commercial tenants are responsible for maintenance and insurance, making it a more hands-off option for landlords
– Commercial property often gives you the opportunity to let to multiple tenants, allowing you to diversify your portfolio and reduce risk
– Commercial tenants tend to keep their properties in a good state of repair to attract good staff and clients
Taking the above into consideration, it’s easy to see why savvy landlords with multiple properties are adding a mix of residential and commercial to their portfolios to get the best returns and reduce risk.
