How To Sell Your Commercial Property Fast
When selling a commercial property, it’s important to remember that the commercial market is completely different to the residential market. There are different legalities, demands and market forces between the two markets, so the need for commercial properties could be completely dissimilar to residential.
We all know that there is always a need for houses in the UK, as the country struggles with a continual housing shortage. However, the demand for commercial properties is based on a range of variables, with the main issue being how the UK economy is performing. A low employment figure and high GDP (Gross Domestic Product) situation generally results in an increase in demand for commercial uses to increase production.
The history of the commercial property sector
Since the market crash in 2008, the commercial property sector has been hit significantly, with some regions seeing property values decreasing by nearly 50%.
This has now subsequently led to banks and building societies withdrawing funding from commercial investments and developments, which led to a severe downturn in the sector.
While the economy has picked up since the crash of 2008, the market is still trying to catch up and as a result, returns are nowhere near their peak in 2007-08.
The current market
According to research conducted by The Royal Institution of Chartered Surveyors (RICS), the commercial market is proving resilient and the demand to rent has levelled off for the first time in five years.
The commercial demand for properties varies dependent on sector, so one market may be performing better than another. The retail and office sectors are facing a slump in decline for properties, whereas the demand in the industrial sector remains strong.
Despite the fears of Brexit repercussions, some suggest that the continual demand for commercial properties in 2016 could branch into 2017.
A spike in rent returns and lease renewal opportunities led to a successful year last year, and 2017 is looking to be equally as successful.
How to sell commercial property fast
You may wish to sell your commercial property quickly for a number of reasons. This may be due to financial problems, retirement, negative equity or unaffordable commercial business rates.
Selling commercial property is no longer an easy task, as a large number of pension funds have reduced this type of asset class in their client’s portfolios. Commercial property auctions are just one method of selling your property quickly however, this method does come with similar restrictions to residential auctions. Large auction fees and an uncertainty of a guaranteed sale are just some of the pitfalls of selling this way, and should be considered if you are planning on selling a commercial property at auction.
If you want to receive a guaranteed quick sale, we at Good Move can help. We can buy your property, whether commercial or residential, for up to 85% of the market value. We come equipped with over 40 years of commercial property surveying experience, an expert legal team and a property buying service and business model, which retains the highest regard in the surveying industry.