An alternative investment: Existing business property

In this market phase and given the overall situation as described above, investments in core-plus or inner-city business property are an absolute recommendation that often offer two major benefits:

• the purchase is still relatively affordable due to the market situation, and there is lasting availability of a diversified range of potential tenants for re-letting.
• With inner city locations, there is great potential to add value and enhance yield as part of subsequent use of other commercial spaces as office areas or even residential space – as the process of densification continues to advance in virtually all cities.

However, with older buildings, shorter-term and also often rather fragmented renting patterns, the expertise of a good asset manager is often required who is able to assess both the tenant’s business models and the re-usability of the site.