I thought I would take a few minutes of your time to review the year just passed in respect of the commercial property market.
2019 proved to be a solid one, despite all the political uncertainties surrounding Brexit which have been settled for the time being and the potential of a ‘no deal’ has been pushed down the line until 2021. The certainty is that we will leave the EU on the 31st January 2020 but our ongoing trading relationship with Europe and the rest of the world hangs in the balance.
Whether you were remain or leave is now irrelevant and we have to trust in our elected representatives and their hard working public servants to do the right think for the UK.
Enough of politics, but the property market has never been and cannot be divorced from political uncertainty. Despite probably one of the most uncertain economic and political times in living memory the commercial property market has held up well over the last 12 months. We continue to be highly successful in selling and letting all types of commercial property across the whole of Essex providing our clients with a professional and attentive level of service throughout. Industrial rents continue to show growth and supply is short, many estates enjoying continuing full occupancy.
We are fortunate to have a number of investment opportunities on our books at the moment, having sold a number also during the course of 2019. Mixed retail/commercial investments are generally a good buy and represent yields of 7 – 7.5%. Rather better than standard buy to let investments and a lot less hassle! Commercial tenants have maintaining responsibilities for the property that they occupy unlike residential tenants. Industrial investments are particularly sought after and we secured a number during 2019 on the basis of ‘off market acquisitions. If you are thinking of investing in property but are daunted by the prospective of commercial – come and talk to us, it is well worth dipping your toe in that particular water.
If you have a property that you are thinking of selling or letting on 2020 we will be delighted to hear from you and to provide you with a free market appraisal.
Diane Tait
Associate Partner