News / Blog

Commercial Investment Demand

As soon as the COVID-19 lockdown began, people across the UK immediately felt its impact. Overnight, millions of us started working from home, companies restructured their operating systems and tech solutions were brought in to tackle the new challenges facing a world under lockdown. While many of these changes will be reversed when restrictions are eased, a lot of businesses, and individuals, are likely to alter the way they work for good. These permanent changes in habit may well have an impact on the commercial property sector, with investors looking to find a safe home for their money in turbulent times. Read more to find out about these potential changes. 

Commercial Investment Demand

As soon as the COVID-19 lockdown began, people across the UK immediately felt its impact. Overnight, millions of us started working from home, companies restructured their operating systems and tech solutions were brought in to tackle the new challenges facing a world under lockdown. 

While many of these changes will be reversed when restrictions are eased, a lot of businesses, and individuals, are likely to alter the way they work for good. These permanent changes in habit may well have an impact on the commercial property sector, with investors looking to find a safe home for their money in turbulent times. Read on to find out more about these potential changes. 

Changing the way we work

The COVID-19 pandemic has caused many companies to rely much more heavily on remote working than they would do normally. In many cases, this forced trial has shown employers that remote working is a practical and viable option for their workforce. 

Once the pandemic has been brought under control, it’s likely that a large number of businesses will offer their staff the opportunity to work remotely on a regular basis. Some experts are even predicting that Brits will receive a new right to work from home, something that could dramatically reduce the number of people in the UK’s offices. 

Commercial Investment Demand

Investing in commercial property 

A consequence of this could be that as companies change the way they work, investors will begin to put their money in flexible office spaces. Commercial property has always been a tempting area for investors, especially in the country’s big cities. With more businesses potentially looking to lease flexible office space rather than buy their own premises, this sector could become even more lucrative. 

On top of a predicted increase in demand, commercial spaces are also set to fall in price. Some types of UK commercial property, particularly retail, have dropped in value by as much as 20%. With many predicting that this is as low as they’re likely to go.

Commercial Investment Demand

Low interest rates 

Another factor that is likely to drive an interest in commercial property investment is the record low interest rate. The Bank of England recently slashed the base rate to 0.1%, the lowest rate on record. This is likely to result in lenders offering a range of excellent value products on both commercial and domestic mortgages. Investors looking to take out a loan to fund their purchase, could well find that the low rate gives them an even better return on their investment. 

With the commercial property market in an unknown territory and likely to undergo significant changes during and after the COVID-19 lockdown, now could be a good time to talk to Agile Property Partners. To find out more, and to learn about future commercial property investment opportunities in the Norwich and Norfolk area, get in touch with us today.