The property market is a constantly shifting beast, never resting in the same place and always evolving to present new opportunities or challenges. As the needs of people grow or alter, so do the services and property requirements, leading to changes in mentality that play a huge role in the shape of the real estate industry.
With this in mind, it’s even more important to stay on top of current trends and behaviours, ensuring that your real estate investments are the best that they can be. This is especially true for commercial property acquisitions, where end-consumer needs are just as important as the property buyer’s. To assist, here are three of the best commercial investments worth considering in the current market state.
Shopping Centre Units
Whilst traditional highstreet stores are struggling through the digital revolution, shopping centres continue to stay strong due to the consumerist culture we live in. The truth is, fewer consumers are making purchases in person, resorting to digital means instead. Despite this, many opt for physical retail shopping within large shopping centres, making them some of the best commercial property acquisitions available.
Highstreet shopping offers users little variety, little social opportunity and little incentive for buying in person. Alternatively, whilst shopping centres have the same prices and individual experience, their clustered nature, variety and food availability turn them into a good destination for social occasions. This drives footfall and business success, which is what makes shopping centre units a significantly better commercial property investment choice when compared to their highstreet counterparts.
Warehouses and Storage
Whilst physical sales may be going down, online sales are on the rise and along with online sales comes a need for efficient, fast delivery. Fast delivery requires nearby stock storage, which is why countless online businesses are being forced to invest in physical warehouses and storage solutions to hold their product.
As with all business, this increase in demand warrants an increase in supply and the demand will only rise further as society moves further towards technological convenience. Acquiring a warehouse or storage property is likely to be a very healthy investment in the years to come and might even be worthy of renting in the immediate future. What’s important to note is that the most desirable warehouses will have strong transport links and preferably a nearby postal hub, allowing for businesses to quickly create a supply chain for their organisation.
Sporadic Commercial Units
Finally, it’s important to note the value and importance of individual pockets of commercial units. In particular, the presence of these shopfronts in residential areas and small community hubs.
There are debates surrounding whether small shops are a viable business model in the current commercial climate, which is a difficult discussion to fully quantify. However, there’s no mistaking that we are moving closer and closer to convenience consumerism and for those who don’t buy daily necessities online, local corner shops are as convenient as it gets.
Considering this, the acquisition of well placed, well connected individual commercial units can be a great asset – especially in growing suburbs and developing areas. Physical sales may be reducing, but they will almost never be fully eliminated because people still need to buy their milk in the morning.
Hopefully, this quick guide will have offered an insight into current market behaviours and how they are linked to consumer behaviour and technology. Ultimately, no investment is guaranteed and nothing is set in stone, so always stay aware of the risk involved in your acquisitions. As with all things we do, being educated in what’s happening around the world is fundamental towards success in the real estate industry.