Top benefits of investing in commercial property

Top benefits of investing in commercial property

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.