Commercial investors advised to look close to home - commercial mortgages

30 August 2007

Commercial property investors should think twice about looking further afield when considering where to put their money, it has been suggested.

With the sector currently experiencing a quieter period following the record levels of growth witnessed in 2006, landlords with commercial mortgages should be aware that an understanding of the local market is now more important than ever, according to Mat Oakley, head of commercial research at estate agent Savills.

Furthermore, the time when landlords could sit back and simply wait for market forces to spur on capital growth is beginning to end, Mr Oakley advised.

"Even more so now than anytime in the last five years, understanding the local market dynamics in commercial property investment is important," said Mr Oakley.

"Over the last five years you could have bought pretty much anything and the market would have carried you along. That''s certainly changing," he added.

Meanwhile, work has begun on a new development in Yorkshire aimed at providing a focal point for commercial property investors in the area. The project, which is being built at York Business Park, will focus on freehold property for small and medium sized commercial firms.