David Ajose CEO of Exeid, the rapidly expanding boutique commercial property consultancy commented on the recent changes in empty rates liability and the further impact of interest rates on the Commercial Property Market.
“We expect interest rates to firm up in Q3 this year adding more pressure on any highly geared property investments. This combined with empty rates liability charges will mean that the commercial property market will be under pressure for the next two years at least. We think that the market will be no further on, in two years time than it is today. Then we believe that things will begin to improve slowly, towards the end of 2013 and into 2014”. Although this may sound a little depressing to some, David thinks that anyone with a long term view and the ability to underwrite the cash flow element of their property purchase over this period has ample time to consider purchasing as a serious option .David also says that if you are a potential purchasers of commercial property you should, however, take advantage of this lull in the market and use the time wisely to select the right property whilst being mindful of the fundamentals of property purchasing before you proceed to completion.
Exeid have an innovative Lease to sale package which allows a potential purchaser the ability to acquire a property with the option to purchase at the end of a 5 year period. this enables an individual or organisation to ‘acquire property without tying up capital at the front end. After 60 months the tenant can switch to a purchase at open market rates which will allow them to avoid dilapidations charges and still benefit from any tenant improvement s that have been made. For once this is a fair deal for tenants. Further more it allows companies to acquire property that is large enough for expansion but to buy it once they have fully grown in to it. Exeid also provide a subletting service which enables the client to mitigate rates and service change on the unused portion of the space whilst they are growing but without any of the day to day management hassle of having to look after tenants.
If you are considering a purchase but are unsure of where to start then we have a package that can help you in this endeavour Please email David Ajose for more information. David Ajose CEO of Exeid, the rapidly expanding boutique commercial property consultancy commented on the recent changes in empty rates liability and the further impact of interest rates on the Commercial Property Market.
“We expect interest rates to firm up in Q3 this year adding more pressure on any highly geared property investments. This combined with empty rates liability charges will mean that the commercial property market will be under pressure for the next two years at least. We think that the market will be no further on, in two years time than it is today. Then we believe that things will begin to improve slowly, towards the end of 2013 and into 2014”. Although this may sound a little depressing to some, David thinks that anyone with a long term view and the ability to underwrite the cash flow element of their property purchase over this period has ample time to consider purchasing as a serious option .David also says that if you are a potential purchasers of commercial property you should, however, take advantage of this lull in the market and use the time wisely to select the right property whilst being mindful of the fundamentals of property purchasing before you proceed to completion.
Exeid have an innovative Lease to sale package which allows a potential purchaser the ability to acquire a property with the option to purchase at the end of a 5 year period. this enables an individual or organisation to ‘acquire property without tying up capital at the front end. After 60 months the tenant can switch to a purchase at open market rates which will allow them to avoid dilapidations charges and still benefit from any tenant improvement s that have been made. For once this is a fair deal for tenants. Further more it allows companies to acquire property that is large enough for expansion but to buy it once they have fully grown in to it. Exeid also provide a subletting service which enables the client to mitigate rates and service change on the unused portion of the space whilst they are growing but without any of the day to day management hassle of having to look after tenants.
If you are considering a purchase but are unsure of where to start then we have a package that can help you in this endeavour Please email David Ajose for more information.