Great Britain has lost more than 17,500 chain stores from high streets, retail parks and shopping centres since the pandemic began in 2020. 48 commercial premises, including shops, restaurants and leisure centres closed every day last year, according to Local Data Company, on behalf of PwC.
With the pandemic radically changing the way in which we access commercial spaces in towns and cities, it might seem surprising then that many vacant premises are being snapped up by investors. Why? Some business owners are seeing the pandemic as the prime time to commit to a property transaction and plump up their portfolios. If you’re interested in buying or selling premises in Essex, this guide will inform you about why business owners are still investing in commercial property and the most suitable commercial purchase types during the pandemic. When you’re ready to proceed, our commercial purchase solicitor team can offer our guidance and support whether you’re buying or selling.
There is a surprisingly high demand for commercial properties in 2021. Although many footfall businesses are only now being able to get back on their feet, there is a lot of activity in the buying and selling of commercial property. As professional commercial conveyancing solicitors, we have also noticed an uptick in clients seeking commercial property legal advice. In particular, there’s an interest in landlords taking over business leases as they have chosen to move their area of focus to a different revenue stream.
With interest rates low, it may make more sense for business owners not to leave their money in a bank where it’s not really working for them. Instead, by investing in a commercial property, they’ll have the opportunity of earning a regular income stream whilst enjoying the capital growth of the building itself, particularly if it’s located in a prime location.
As some commercial business owners are looking to cash out during the pandemic, perhaps to cover financial needs elsewhere, there are some bargains to be made if properties are listed for less than market value.
Is there are a pattern to the type of commercial properties that investors are looking for? Any building that facilitates social distancing is an excellent opportunity, so a property with appropriate ventilation and a wide, open layout would be an advantageous purchase.
Additionally, business owners are moving to takeaway or deli style venues which perhaps have cheaper overheads but are more likely to stay open in the long-term with the uncertainty that still surrounds the spread of the COVID-19 virus.
If you’re looking for a commercial property solicitor in Essex, then Hook & Partners offer our commercial property law solicitor team with more than 40 years of experience in providing legal advice and support to business owners.
Book an initial consultation with our commercial property solicitor Essex team today on 01268 692 255 or email email@example.com.