Commercial Property - Which sectors are best?

In the last thread people were talking about the different sectors of commercial property? What are these? Which are hot?

Thanks,

Bob

Bob,

Typically, property is broken into two sectors: - Resential and, - Commercial.

Commercial is then broken into several sub-sector: - Retail (with micro sectors being retail waehousing, high st shops and shopping centres) - Ofices (broken into Central London offices, south east offices and regional offices) - Industrial (broken into logistics and manufacturing) - Others - this can include healthcare property, marinas etc. It is the quirky stuff.

Hope this helps.

Julian

helpful responses julian.

so which setors would you recommend for investment currently?

I understand that rental growth is expected from certain sectors of retail (reatil warehousing and shopping centres) and offices (particularly in the south-east and central london). So these are the sectors to be buying into.

Clearly, these sectors are not for your average private investors but for the big boys. Public companies and institutions.

Personally, I don't think that smaller residential investors should be looking at the this market.

FS

FS,

This not my expertise but industrial seems to provide the highest yield and as an income investor for me this is key.

I think this is a sector to look closely at.

For £2,500 - £11,000 you can buy into a fund managed by Close Brothers. They have funds for income and growth. Have a look at their web site. www.cbil.com

If you want to be selective they have funds in ground rents; reversions; commercial property; leisure etc

You can put these into your pension - mine has increased by 5.74% in 5 months.

Apart from investing through the funds I have no connection with Close Brothers.

For £2,500 - £11,000 you can buy into a fund managed by Close Brothers. They have funds for income and growth. Have a look at their web site. www.cbil.com

If you want to be selective they have funds in ground rents; reversions; commercial property; leisure etc

You can put these into your pension - mine has increased by 5.74% in 5 months.

Apart from investing through the funds I have no connection with Close Brothers.

Helpful post Michael.

For all those interested the web address is http://www.cbil.com/

Julian.

Retail Warehousing has been the best performing property sub sector over recent years, well outstripping everything else, followed by West End offices I think. As Francesco rightly said above, these are generally owned by the institutions and are almost impossible to buy unless you are looking at circa £5,000,000 plus. Something of this size would give you a rental income of circa £250,000pa although growth prospects are good as planning restrictions are tight. Industrial property is higher yielding as growth prospects are less and voids generally higher. Unit shops may be a good bet as high street properties will invariably let quickly and are smaller lot sizes. Glanmore Property Fund do a unit trust and have £500M invested in shopping centres, retail, industrial and offices, with a minimum investment of £5000. They aim to give a 5% yield yet show good capital growth which you arguably won't get in the residential sector at the moment.

Paul

Hi, Im looking to invest in multi let properties i.e houses which have been converted into bedsits/studios/flates, was wondering what views everyone had on these types of investments...pitfalls, experiences...etc....