Commercial property offers ''safe long term investment'' ? commercial mortgages

21 June 2007

Commercial property is becoming an increasingly popular attraction for investors because of its "hands off" approach and safe long term prospects, it has been advised.

Property Investor News deputy editor Peter Hemple has said that the nature of the investment meant that longer-term returns were easier to accrue due to the typical 20-year lease used for most commercial properties.

However, Mr Hemple also advised that potential landlords looking to take out commercial mortgages should research carefully before investing in smaller firms due to many start-ups being unknown quantities.

"If you were looking for a very hands-off investment that''s going to be safe, [and] you''re looking in the long-term […] then there''s the attraction of going commercial," Mr Hemple noted.

The comments come as the Confederation of British Industry reports that tenant demand for commercial property across the whole of England is set to increase over the next six months, with the balance of firms expecting to occupy more space by the end of the year up by seven per cent in relation to figures from January.