After several flat years, the commercial property market in London has really taken off. In 2014, investment in commercial property in the city reached record-breaking levels. During the first 3 months of 2014, over £4.3bn was invested into commercial real estate in the centre of London and the tide of money has not stopped since.
Much of that money has come from overseas investors who are looking for a slice of the pie. They know that the availability of office space in Mayfair, The City of London and other business districts is limited. Yet there is a lot of demand with thousands of new firms setting themselves up in the capital every year. For investors interested in commercial real estate London presents a fantastic opportunity.
The influx of money and the fact that the recession appears to have ended in the UK is fuelling a building boom in the capital. Despite this construction boom, demand for office space in the capital is nowhere near close to being met. During the first 3 months of 2015, tenants rented 2.4 million square feet of office space in the UK’s capital city.
Much of that space was in London’s new skyscrapers. Floor space in The Shard and The Gherkin is at a premium. Even The Walkie Talkie, which only opened in 2015, has a high occupancy level. Many of London’s office buildings are close to being full.
Fortunately, there are several other buildings under construction, and various regeneration projects going on throughout the city, including in the suburbs. However, whether this will be enough to meet the growing demand for office space remains to be seen.
Currently there are 70 tall buildings under construction in London with another 200 being planned. Most of the skyscrapers planned for the city are still on the drawing board. Some will be built, but not all of them will get past the planning stage or find finance. A high percentage of these buildings are planned to be for mixed use, which means that the actual square footage of office space being added to the pool is going to be relatively low despite the building frenzy.
Historically the tower blocks in London were concentrated in the Canary Wharf area. Over the past few years, several high-rise blocks have been built in the financial district and that is a trend that will continue with ten blocks being planned for the area. However, the majority of the tall buildings to be built over the next decade are going to be strung out along The Thames, all the way from Chelsea in the West to The Royal Docks in the East.
For the first time in decades, much of the development is taking place south of the river. Twenty-three of the seventy tower blocks currently under construction in the capital are being built on the southern side of The Thames.
As well as new office space, there are plans to develop new warehousing, industrial units and other types of commercial spaces across London. This means that there is plenty of choice for those who want to invest in commercial property in the UK’s capital city.
city of London, although it would be an apt name for the new skyscraper that is soon to be built at 52-54 Lime Street. This spiky skyscraper has planning permission and is set to open in 2017.
The skyscrapers that are already in London are just the start. There are plans for another 250 tower blocks. Not all of them will get off the drawing board, but enough of them will be built to transform London into a true high-rise city, and go some way to helping to meet the increasing demand for office space in London.
Regus is a global workplace provider offering flexible space solutions for over two million members. They currently operate in over 300 locations within the UK and have recently added a new site in Leicester to their growing network. Approximately 1500m² ROCKFON Artic ceilings were installed throughout the new office to help create the perfect working environment. Posted via Industry Today. Are you into it? Follow us on Twitter @IndustryToday
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In the real estate sector, it is essential to study demographics and local markets and have a good marketing strategy. With the high risks and gains of the real estate business, drawing on the services of a professional marketing company can help you make the informed decisions on advertising and promotion that are vital to your continued success.
The specialist products and services, which the consultants will bring with them, will combine to form a much more detailed insight that will help you to meet the needs of your existing and potential clients. Here are a few things a marketing consultant can help you with:
Initiate a long term strategy
A marketing company will help you to initiate the most appropriate strategy to promote your business and boost sales. This will be based on the most effective marketing and promotion options and will use online and traditional media to maximise ROI. Importantly, the strategy adopted will also take into account the future needs of your clients, and a specific market segment will be targeted using online and email marketing, as well as more traditional strategies like direct snail mail.
If you are serious about growing your business, you might consider seeking out an equity investment. Equity investors, either individually or through companies, will put their time, money and effort into helping you grow your business, naturally in exchange for a portion of business equity. With a dedicated investment company such as Charterhouse Capital Partners, Chris Warren and his team will help you save precious money and time. Investment companies can often bring a wealth of business experience and strategic advice to help you plan a long term growth strategy.
Get quicker results
Marketing consultants will help you rework your existing business practices and apply the leverage needed to improve them. New opportunities will be identified and strategized, and your marketing and sales operations optimised. Reaping benefits while reducing costs is what it’s all about and you’ll get better quality and faster results. The marketing company’s profit-earning strategies will enable you to reach your target clients using online media and creative marketing techniques.
If you target specific segments of the market this results in enhanced quality of your lead generation. This in turn will have a direct impact on the avoidance of revenue loss, and get you faster results.
The right ROI strategy
A marketing company will prove invaluable in identifying and tailoring the right marketing strategy to provide you with maximum ROI. You’ll have quantifiable results in both real-time and ROI feedback as regards the strategy’s effectiveness. Only strategies that give quality lead generation and reduce the overall workload are moved forward with, and all results are optimised to enable you to focus on new markets as well as on your internal operations.
Summary
Any real estate business can be greatly helped to consolidate both its online and offline presence by bringing in a marketing company. They’ll use a whole raft of advertising and marketing techniques to maximise lead generation and target clients, so you can take your business to the next level.
There are many good reasons why you might be looking to invest in real estate in your retirement years. Property gives you security and is functional, giving you a place to live in all or part of the year. Of course, with property and real estate – whether it’s a residential home, commercial property or a piece of land – location is everything. Where your property is located will determine its cost and investment value, and, of course, whether it’s somewhere you would want to spend time yourself. If part of your investment plan is to let your property as a holiday home, or indeed to lease it as commercial premises, then location is also crucial.
Looking abroad
Given the above considerations, your best bet might be to look outside the UK. With the pound currently strong against the euro, many British pensioners are buying property in Europe, either as buy-to-let concerns, second homes or permanent residences.
There’s no reason just to limit your choices to Europe, however. Developing economies are very much worth considering if you’re seriously thinking of buying real estate as an investment. This is for the simple reason that as these economies grow, the value of land and property will increase, especially in the major cities or in popular resort areas. China and Brazil both have emerging middle classes that want luxury homes, cafés, restaurants, hotels and retail outlets to serve them. As economies strengthen, construction work increases, and land and property increase in value.
Building a portfolio
Global property investment can be the beginning of a serious and rewarding investment career. M1 Group began in property and construction and is now a major global investment concern, comprising companies that specialise in travel, energy, fashion and consumer goods, among other enterprises. Property still remains important, however, and M1 Group remains very much in the family, with founding brothers Taha and Najib Mikati now joined by Taha’s son Azmi T Mikati (see http://www.bloomberg.com/research/stocks/private/person.asp?personId=23953362&privcapId=23067277), who is the Chief Executive Officer and Director of M1 Limited. Even if you don’t intend to develop your portfolio on such a grand scale, property is still an investment that can be handed down to your children or grandchildren.
What to look for
It’s crucial to buy at the right time. If you invest during a boom when prices are high, then you could see the value of your investment depreciate as the economic cycle moves into its low point. While the value will probably recover eventually, you might not want to wait that long. Look for countries where prices are low but have the potential for expansion. Also consider whether the government offers tax breaks to overseas property investors, and check what local rules and fees apply to those buying real estate from abroad. There may, for instance, be strict guidelines as to how many months of the year you can be in residence.
No matter what economic or political turmoil is affecting the financial markets, real estate is a hard asset that will always retain an intrinsic value. While stocks and shares can end up worth less than the paper they’re written on, real estate is a finite resource that will always be in demand.
ISG has demonstrated its support for innovative social enterprises by creating high-specification office facilities for GROW@Green Park, an innovative fusion space offering co-working and lab facilities within a start-up accelerator hub. GROW@Green Park is part of ConnectTVT, the platform aimed at putting the Thames Valley back on the tech cluster map. Posted via Industry Today. Are you into it? Follow us on Twitter @IndustryToday
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