common commercial leases UK
A fundamental understanding of commercial leases is important for anyone wishing to invest in or rent a commercial property. Most commercial property is owned on a leasehold basis. Commercial freehold applies mainly to either very large acquisitions by investment firms or smaller sales of say, a small warehouse, mixed-use residential units or small office blocks...
Read More
negative interest rates commercial property
The prospect of negative interest rates have been lingering in the news for some time, but how do negative interest rates affect commercial real estate? Interest rates in the UK, and indeed throughout much of the world, have been held at historic lows for some time. Entire generations have not yet seen a high-interest rate...
Read More
Understanding the Gross Rent Multiplier in Commercial Real Estate
It’s time to cover another commercial real estate metric, this time the gross rent multiplier (GRM). We’ve already covered the following commercial property metrics, all of which are designed to provide insight into potential commercial real estate property investments: Cash-on-cash return Net present value (NPV) Debt yield ratio These could all be classified as ‘napkin...
Read More
a guide to finding commercial real estate investment opportunities
The value of commercial property investment in the UK reached some half a trillion pounds in 2018 and continues to rise. Back in 2016, the Property Industry Alliance found that commercial property in the UK was valued at £883 billion, representing some 10% of the UK’s net wealth. As we can see, the commercial property...
Read More
the pros and cons of renting commercial property
There are 4 main routes to commercial property ownership and usage: Renting, leasing or letting Leasehold Freehold Licence to Occupy Renting or letting is shorter-term whereas leasehold is longer term, but still involves a contractual tenancy agreement between the freeholder and the leaseholder. Renting also involves a tenancy agreement, but renting is short-term, usually involving...
Read More
Selling commercial property
In every commercial property journey there comes a point where you’ll need to sell, so how do you sell a commercial property? Selling a commercial property is similar to selling a residential property, but the process is likely longer and the conveyancing process is slightly different. Valuations are also more complex and it’s often recommended...
Read More
Understanding net operating income in commercial property
Net operating income is another key metric used to assess real estate property investments. A relatively straightforward and easy figure to calculate, net operating income assesses the profitability of a commercial building. It can be used to quickly compare the potential income earned on a building and acts as a crucial precursor to other calculations...
Read More
flipping commercial property
Flipping property is a phrase we’ve become accustomed to in the residential property market, but can you flip commercial property? Flipping, in a broad sense, is a method for turning a quick profit from buying and selling a property. In residential property, the traditional flipping process is to purchase a property, perform renovations and upgrades...
Read More
How to Calculate the Debt Yield Ratio
The modern lending market has diversified heavily in the last 10 years and lenders are invoking new ways to calculate risk, including debt yield ratios. Debt yield ratios are one such lesser-known metric used to calculate the risk involved in commercial real estate lending. Debt yield combines with the Loan-to-Value Ratio (LTV) and Debt Service...
Read More
1 2
Phoenix and Partners Company Number:04094399