The year 2024 has dawned upon the commercial property market with a unique set of challenges and opportunities. Amidst an economic landscape where bond yields and interest rates continue to remain high, the cost of financing or refinancing commercial properties has surged. However, seasoned investors and astute market players recognise that within challenges lie huge opportunities that the masses just don’t know about. In this article, I’m going to delve into the factors contributing to the current market conditions and explore the top seven strategies to capitalise on the window of opportunity in the commercial property sector. If you want to achieve above average returns in markets with little competition – then read on!

Firstly, let’s look at the many reasons why Commercial Property is a great sector to invest in:
◆ Freedom from Residential Restrictions: Commercial property offers an escape from the myriad restrictions and regulations associated with residential investments in the UK market – commercial property is already highly regulated and, importantly, regulating commercial property further is not deemed to be a ‘vote winner’ by the major political parties.

◆ Strategic Diversification: Embracing commercial real estate presents an excellent diversification strategy, allowing you to broaden your investment portfolio strategically.

◆ Inflation Hedge: Commercial properties can serve as a robust hedge against inflation, thanks to the regular rent reviews often embedded in commercial leases.

◆ Permitted Development Opportunities: With the numerous Permitted Development (PD) rights available in England, you gain the flexibility to convert commercial spaces to residential or, indeed, to other commercial uses. The UK Government is also actively consulting on a raft of new PD rights, including the potential conversion of hotels and guest houses to residential, the widening of agricultural PD rights, and more flexibility of existing PD rights. (such as Class MA)