Commercial property offers investors the prospects of attractive returns, but it is important that they choose the right entry method to this market
Many investors have begun to venture into the commercial property market and in particular, given the pricing of other assets and the recent tribulations of the equity markets, many more will be looking at this market now. The first thing to recognise is what commercial property is not - residential. Commercial property returns generate a relatively high yield probably ranging between 4% and 6% before costs, and are driven by the following: quality of buildings and locations; length of lease - anything from very short to 20+ years, with a market average around 10 years; quality of ten...
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