Opportunities in London‘s Resilient Commercial Property Market
In the dynamic landscape of commercial property investment, opportunities often emerge during times of change and uncertainty. Current market conditions in London present a favourable environment for investors seeking to capitalise on the city’s resilience and long term growth potential.
As the London commercial property, office and residential property market rebound and opportunities arise when others are looking to divest, we stand ready to expand our current portfolio. With a deep-rooted understanding of the market dynamics, and a commitment to delivering value and driving positive change, we aim to continue capitalising on the demand for high quality commercial office space and the surge in residential rents, building upon previous success in the world of property investment.
Published: July 27 2023
Author: Byron Baciocchi
With liquidassets, one can actquickly.
These are the 4 key opportunities that investors should be focusing on in the current real estate investment market:
Current Landlords Seeking to Refinance: Higher interest rates have left some landlords opting to divest when refinancing is not an affordable option. As a result, they are looking to sell their properties at reduced prices, putting cash buyers at an advantage.
Buildings with Vacant or Unutilised Space: Commercial properties that are not fully let offer an excellent opportunity for investors to purchase at competitive rates. This allows a strategic approach to renovations of the asset. For example, Unica Capital elevates vacant spaces to higher standards, aligning them with the new ESG (Environmental, Social, and Governance) standards, before offering them to new tenants. This approach also allows the opportunity to move existing tenants into newly refurbished spaces, at a better rental yield, before creating further opportunities to fully refurbish previously tenanted areas. This comprehensive approach not only increases yields throughout the property but also spreads costs over the long term, keeping the building occupied and maximising its potential for sustained growth and profitability.
Vacant Buildings with Untapped Potential: Some vacant buildings may appear unattractive in their current state, but they hold hidden potential. By undertaking a complete refurbishment programme, one that elevates the property to meet the new standard of premium offices and promotes desirable ESG credentials. The best way to unlock the value of a portfolio and transform vacant buildings into desirable lettable spaces.
Old Buildings with Character: Historical buildings with unique character and charm might be priced lower due to the current owners’ inability to afford improvements and desire to divest a portfolio. For Unica Capital, this presents an excellent opportunity for us to acquire such properties at reduced prices; this extra capital can then be invested into the refurbishment to ensure a high quality finish. This undertaking of refurbishment works revitalises the property into desirable commercial spaces with historic charm and modern amenities that appeal to forward thinking businesses.