Commercial property in North London is subject to change at a second’s notice. Fluid demographic trends, new economic figures, the ups-and-downs of the retail sector: in order to grab a bargain you have to be prepared to put in the time and keep up with what’s happening. The choice of whether to look for shops to rent in north London or go all-in and look for a shop for sale in London will depend very much on what relative costs are doing at any one time, as well as the long-term prospects and, of course, your own financial status.
As things currently stand, there is significant downward pressure on retail rents across London. There are a number of reasons for this, but chief amongst them are continuing economic worries, and limited confidence in the Eurozone, as well as the competition represented by the ever-growing online market. Several high-profile bankruptcies – very recent and more broadly since the beginning of the Credit Crunch – have underscored the fragility of the high street. 2012 was not a good year, with Blockbuster, HMV and Jessops (to name just three) dropping from the scene.
Why might this be good news? Well, it’s a brave firm that looks to set up in this climate, for starters. But those businesses which do get going in a recession are generally leaner and tougher than the ones which start in good years. Plus, rents are lower at the moment than at any period in the recent past. Empty shops mean decreasing rents, and many surveyors think the trend may continue longer still. This is in contrast to the industrial and office sector, where demand is gradually picking up.
Where does this leave you? If you are looking for shops to let in north London, there may never be as good a time as now. If your business is viable and waiting to start – or expand – then you can snatch a bargain and hit the ground running. If you’re a landlord looking for a shop for sale in London to add to your portfolio, then this presents a rather different dynamic, with lower yields than you might otherwise enjoy. The key thing is to remember that the commercial property London market is not homogeneous; the headline figures you read in the papers hide a vast difference between sectors and in different areas. Choose carefully, plan well and act decisively – and you won’t regret it.
Please visit http://www.claridges-commercial.co.uk