Property in Glasgow

B

Bob14

Guest
Hello everybody.

Does anyone know much about commercial property in Scotland? Is it a good investment? Are property prices increasing as much as here? The reason that I am asking this is because I saw an ad for a commercial premises in Westmuir street Glasgow in a local paper. The asking price is £105,000 stg. The property in leased for 15 years for £6000 stg per year. I would appreciate some advice on this matter.

Thanks for your help.
 
Depends on the strength of the covenant, as anywhere.

Return of just under 6% is about right for Glasgow, but there are a few obvious things to watch.

Strength of covenant. Who are the tenants, and how solid are they?

Are there break clauses, and when do they occur?

What is the likelihood that the tenant will avail of the break? Are they growing and likely to need a bigger place for instance, or are they shrinking?

If they look liked they are staying, what does the lease say about revisions to the rent? Are these revisions upwards only?

If the premises are retail, is trade on the decline in the area? Don't forget that the big shopping centres are sucking the life out of the high streets there (a bit like here really).

Also remember that there are several types of commercial zoning in the UK, and it may not be easy to change from one to another. Changing back to residential, apartments, etc will almost certainly not be allowed by the planners, and they are very sticky on this.
 
Thanks auto.

The building is rented by an off-licence chain called Haddows. Do you know anything about the area? I would need to get my solicitor to look at the rental contract.

Again thanks for your comments
 
You must log in or register to reply here.
Back
Top