Happy New Year to all our Clients; past and present and future!
The past year has been a relatively good one for Andrew Idle Associates and rounded off nicely in late December with the sale of an industrial investment property, and the off-market acquisition of a large retail premises, both on behalf of clients.
What does 2017 hold? The new rating regime from April will assist small businesses further and is bound to influence landlords as to how they sub-divide their commercial properties to take advantage of the situation.
Auction results generally held up well with success rates of 75-80% being typical, though the keenest bidding is for well let lots on long leases to good covenants in prosperous locations.
For short-term leases and mediocre locations, investors are now often able to achieve an initial yield of 11-12%.
In uncertain times, commercial property remains a valued asset with the ability to provide capital growth as well as rental income. In the long-term it has proved itself to be a good investment.
For some investors, industrial property is most popular.
The recent devaluation of sterling in response to Brexit has of course stimulated the manufacturing sector which is particularly strong in the north of England.
Industrial property for both investors and occupiers remains popular in our City, Bradford. In fact, there is a notable shortage of single storey modern sheds being offered through agents and we hold various unsatisfied requirements from parties who enquired about premises that we have recently sold or let.