Commercial property investment increasingly popular with rural businesses
Published May 15th, 2017
Over the past couple of months Berrys Northamptonshire offices have seen an influx of enquiries from many established rural clients who are now seeking to diversify their portfolios and invest into commercial property investments. The farming sector has historically provided very low returns typically ranging from 0.5% to 3% and with uncertainty in the rural market over possible cuts to subsidies upon leaving the EU, commercial property is now seen as a viable investment to diversify.
Over the last 12 months, Berrys have provided a series of seminars to clients informing them of the opportunities in the commercial property market. Feedback from these seminars has been positive and we believe that we will see a new type of investor to the commercial property market over the next few years.
Recently, we have offered to the market a modern office building at 17 White Horse Yard in Towcester let to a strong covenant on a new ten year lease at £28,400 per annum. The marketing of this property resulted in strong interest both from traditional commercial investors and landowners interested in the sector.
Other available opportunities currently being marketed include 3 Cherry Hall Road in Kettering. This property comprises a modern office unit of approximately 2,196sq.ft (204sq.m) arranged over ground and first floors. The property is producing an income of £30,000 per annum exclusive and is being offered at a price of £399,000 exclusive. Nene House also in Kettering, provides an office building arranged over ground and first floors plus a workshop separated by an extensive car park servicing the offices and a self-contained yard for the workshop. The property is let to two tenants by way of three commercial leases and is producing an income of £111,300 per annum exclusive. The freehold investment is being offered to the market at a price of £1,250,000 exclusive.
We predict continued activity within the commercial investment market along with occupier demand for high quality, modern commercial properties. The uncertainty around the economy and the impact of BREXIT, will, we believe ensure a focus towards commercial investment either as part of wider investment strategy or indeed to support weakening returns in other sectors.
We have a range of commercial services and a strong professional team that are able to support you in your decision making process. For further information please do contact Duncan Batty MRICS of Berrys, on 01327 356140.