Commercial property is a broad asset class, providing investors a wide selection of properties with varied risk profiles. Between 1996 and 2016, commercial property rental values grew by 2.1% per year (compared to 1.9% for inflation), showing a strong case for increasing occupier demand1.
Please note, past performance is not a reliable indicator of future performance.
Here we share an overview of the different types of properties that the Commercial asset class includes.
The largest sector of Commercial Property is offices, mainly located in city centre locations, transport hubs and in business parks. Serving numerous sectors such as IT, Energy, Finance and Media.
Retail properties in their various forms are the second largest sub-sector of Commercial Property. Popular locations are in towns (often on high streets), local shopping malls and out-of-town in retail parks and neighbourhood centres.
Industrial properties are important hubs of commercial activity, providing manufacturing, assembly, distribution and internet fulfilment services to industries such as FMCG, Technology, Media (e.g. newsprint), Construction and many more.
Hotels continue to experience demand, notably in key cities and towns, out of town tourist spots and near business destinations and motorways. These include owner managed, branded and budget hotel chains.
These facilities include restaurants, gyms, cinemas and entertainment centres. Located in and out of towns and in retail parks.
Commercial Property also includes alternative buildings and spaces in and out of town. Examples include car parks, medical and healthcare buildings and petrol stations.
Want to know more about our approach for selecting different Commercial properties? Click here to read our Commercial Property Acquisition Strategy.
Click here for an overview of the Commercial asset class.
1. IPD Annual Property Index 2016
Important notice: Capital at risk. The value of your investment can go down as well as up. The Financial Services Compensation Scheme (FSCS) protects the cash held in your Property Partner account, however the investments that you make through Property Partner are not protected by the FSCS in the event that you do not receive back the amount that you have invested. Forecasts are not a reliable indicator of future performance. Gross rent, dividends and capital growth may be lower than estimated. 5 yearly exit protection or exit on platform subject to price & demand. Property Partner does not provide tax or investment advice and any general information is provided to help you make your own informed decisions. Customers are advised to obtain appropriate tax or investment advice where necessary.
Financial promotion by London House Exchange Limited (8820870); authorised and regulated by the Financial Conduct Authority (No. 613499).