Released on = June 18, 2007, 10:18 am

Press Release Author = Jimwatson

Industry = Real Estate

Press Release Summary = When people are talking about and considering entering into
the buy-to-let sector, they are often referring to the private rented housing
market. However, another equally vibrant and potentially lucrative aspect of the
buy-to-let industry is commercial property.




Press Release Body = When people are talking about and considering entering into the
buy-to-let sector, they are often referring to the private rented housing market.
However, another equally vibrant and potentially lucrative aspect of the buy-to-let
industry is commercial property.

A significant proportion of the business community rents its premises rather than
buying them - and this is regardless of the size of the business.

Recently, the HSBC bank sold its Canary Wharf headquarters for £1 billion - and then
rented them back immediately under a leaseback clause. While this deal may be
slightly outside the scope of the average investor, it serves to illustrate that the
tendency for businesses to rent the space they occupy extends right to the top of
the tree.

Office space, serviced or otherwise, is often one of the more lucrative markets.
Depending on how the interior of the building is arranged, the investor can attempt
to either fill his property with several smaller businesses or aim to entice one
large one. Either way, there is plenty of custom and plenty of business being done
in this market.

According to property advisers Commercial First, the market conditions indicate that
there is soon going to be huge demand for commercial buy-to-let mortgages. \"Eight
per cent of all commercial property purchases in 2005 were made by private
individuals, and we believe this market alone to be worth £4 billon annually,\" a
spokesman said.

The commercial property market is apparently \"dominated\" by investors - many of
which are investment companies. However, an increasing number of landlords who cut
their teeth on residential lettings are beginning to realise the potential of the
commercial rentals market.

Commercial First spokesman Stephen Johnson explains: \"There are a number of reasons
why commercial property is starting to appeal to the private landlord. The
underlying performance of the commercial property market has been extremely strong,
with commercial property averaging an annual return of 11.5 per cent over the last
five years.

\"In addition, property yields on commercial property average between 5 per cent and
8 per cent depending upon location and tenant quality.\"

And it is worth noting that the commercial property boom is not confined to the big
business hives of metropolitan areas such as London, Birmingham and Manchester. A
recent survey undertaken by officebroker.com found that Reading and Stockport were
two areas that were experiencing surges in both demand and rental prices for
commercial property, thanks largely to good transport links and proximity to urban
centres.


Web Site = http://www.assetz.co.uk/

Contact Details = Assetz House, Newby Road, Stockport, Cheshire, SK7 5DA, 0845 400
7000, linkexchangeseo@gmail.com