The recent feature in This Is Money, which comments on the attraction of commercial property as an investment, will resonate with various parties we have had dealings with in recent years.
Though there is some caution in the commercial property sector at present (as evidenced by agents offering price reductions in some locations and auctioneers concentrating on smaller lots than a year or two back) commercial property is still an attractive investment for many. This includes those formerly in the residential sector who have recently moved away from that due to tax grabs and legal provisions which are seen to unduly favour residential tenants.
Here at Andrew Idle Associates, we have dealt with a wide range of commercial sales in the past few years, ranging from former nursing homes to former public houses, industrial warehouses and retail premises.
In one recent sale, we placed the Property on the market by private treaty as sold agent in November 2017 and completed on a sale by mid-January 2018. This was a retail unit in central Bradford, sold to a fully funded buyer. The price obtained was slightly higher than had been anticipated and the client was very pleased with our efforts.
This was a good example of a sale that materialised very swiftly without the need to go to auction.
Auction can work well, but private treaty can be better.
We see it as part of the agent’s role to:
- Act quickly to maximise the potential of enquiries received.
- Filter out time-wasters who aren’t serious and don’t possess the monies of which, more likely than not, there will be a few.
- Be clear, straightforward and business-like with all interested parties.
- Keep in close contact with the successful party until the sale completes.
- Maintain close contact with the seller and their solicitors until the sale completes.