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Introduction
If you’re thinking about investing in commercial property in Leicester, you’ve come to the right place. There are many benefits to investing in commercial property and you might already be drawn by the potential of a strong rental return as well as the potential capital return on investment when you come to sell later down the line.
It’s also a great time to invest in Leicester as one of the fastest-growing business locations in the UK, with a £26bn economy and hundreds of millions of pounds worth of new investment already underway or planned in the area. At the same time, locating in Leicester can save on average £15,000 per year per employee when compared to a London location.
Despite the potential benefits though, a successful commercial property investment depends on a number of factors and it’s not a decision to be taken lightly. Careful research, planning and financial forecasting will be key to this success.
We have a long history of helping commercial landlords succeed in their ventures and our commercial property experts know this market inside out. We’re here to share that knowledge to help you make the right decision for you.
We’ve recently written a guide to commercial property investment in Leicester and we’ll expand on that in this article by sharing our top five things to consider before investing. Hopefully this will help kickstart the process, and if you’re still not sure, just give our property experts a call.
What type of property would be most suitable for my needs?
One of the first things to consider is what type of commercial property you might want to invest in and this can depend on a variety of factors. A good place to start is to think about your end goal – why you want to invest in property and what you want to achieve – and work back from there.
Obviously, there will be a lot more that impacts your decision-making process, such as where the market demand lies, where your skills lie, what properties are available, whether the location is an important factor for you if you have time to renovate and so on, but if you keep those end goals in mind, you can make sure that any property investment stands a decent chance of achieving those goals.
There are many different types of commercial property, such as warehouses/Industrial, retail, office, leisure, healthcare and more (read about the official planning classes here), and how attractive each might be as an investment prospect will depend largely on the current market.
And as we know, that market has significantly changed since the pandemic. There is now perhaps reduced demand for large city centre office blocks, but new opportunities for smaller, local centre touchdown points and flexible work spaces.
Retail and leisure is changing to be more destination and experience-led, while the distribution sector has hugely increased. We need only look around Leicester alone for evidence of this with significant developments.
What would be involved for me?
Commercial property investment is no small undertaking, so another major consideration is the various red tape, rules, regulations – and costs – that will be involved, particularly if your plan would be to rent out the property.
It’s vital to understand what your legal responsibilities would be before venturing into any commercial property investment.
These obligations include:
- Health & Safety – carrying out the relevant risk assessments, checks and tests for gas, fire safety, electrical installations and equipment, asbestos, fixture and fittings and more.
- Building maintenance – maintaining the building and structure, ensuring its performance in energy ratings, bearing in mind the growing impetus around reducing our carbon footprint and any legislation that may come down the line in this respect.
- Insurances – depending on the type of property, you’ll undoubtedly need extensive protection to cover the property, loss of rental income and any liabilities.
Where in Leicester would be worth my investment?
If you’re still with us, well done, you’re well on the way to deciding whether commercial property investment in Leicester is for you!
The next consideration is location. And if you narrowed down a preferred commercial property type earlier, then this will help determine where you might want to start your search. Or if location is a higher priority than the type of property, you might want to start with the location.
As one of the fastest growing regions outside London, Leicester is home to a real diverse mix of sectors and industries, so we pretty much have it all up for grabs.
- Industrial – opportunities are widespread across the county, including places like Troon, Thurmaston, Barwell, Lutterworth and Melton
- Offices – the city centre remains a great place to start, as well as surrounding town centres
- Retail – There are specific areas within the city that are more sought after then others and then you have strong locations such as Queens Road, Belgrave Road, Evington Road, Granby Street or some of the many towns throughout the county where you can find thriving neighbourhood retail communities, such as Market Harborough.
Who can I trust to help me with my commercial property investment?
If you’re convinced by the income-generating benefits of investing in property and want to progress, you can always trust Readings to help on each step of your property buying journey.
Our commercial services include everything from deciding whether to invest, finding the right property, getting you set up as a landlord and managing your lettings if you need us to.
We have decades of experience in Leicester and have built up an excellent reputation in that time. Because we want you to succeed, we will only ever recommend properties that we genuinely feel are right for you – this means we’ll take time to get to know you and what success looks like for you. If we sound like the commercial property agents for you, get in touch today.
