{"id":13795,"date":"2022-06-17T12:14:36","date_gmt":"2022-06-17T04:14:36","guid":{"rendered":"https:\/\/www.dev.articusfinance.com\/non-classifiee\/exploring-the-uks-commercial-property-mortgage-market-the-latest-research"},"modified":"2023-09-13T18:12:54","modified_gmt":"2023-09-13T10:12:54","slug":"exploring-the-uks-commercial-property-mortgage-market-the-latest-research","status":"publish","type":"post","link":"https:\/\/www.articusfinance.com\/fr\/blog\/exploring-the-uks-commercial-property-mortgage-market-the-latest-research","title":{"rendered":"Exploring the UK\u2019s commercial property mortgage market: the latest research"},"content":{"rendered":"<p style=\"text-align: justify;\"><span style=\"font-family: Verdana, Geneva, sans-serif; font-size: 13px;\">After a rocky few years during the pandemic, the commercial property market has proven its resiliency in recent months, with strong property price growth, rent price growth, and high demand for tenancies. According to <span style=\"color: #45818e;\"><a style=\"text-decoration: underline; color: #45818e;\" href=\"https:\/\/news.cbre.co.uk\/record-breaking-all-property-capital-growth-in-december-boosts-values-to-above-pre-pandemic-levels\/\" target=\"_blank\" rel=\"noopener\">recent figures<\/a> <\/span>from the CBRE from early 2022:<\/span><\/p>\n<p><!--more--><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-family: Verdana, Geneva, sans-serif; font-size: 13px;\"><em>\u2018All-property capital value growth for the year [reached] 13.8%. This growth was predominantly driven by exceptional month-on-month performance in the Industrial sector. In December, All-property rental values continued to increase, rising 0.8%, taking annual growth to 2.5%. Total returns were 4.1% over the month taking returns to 19.9% for 2021.\u2019<\/em><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-family: Verdana, Geneva, sans-serif; font-size: 13px;\">This is backed up by other reports. A number of big-ticket commercial property sales took place in London during the early part of 2022: <span style=\"color: #45818e;\"><a style=\"text-decoration: underline; color: #45818e;\" href=\"https:\/\/uk.sports.yahoo.com\/news\/flood-cash-sees-london-commercial-114958793.html?guccounter=1&amp;guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&amp;guce_referrer_sig=AQAAAKGRlMsq7zK0Vuja30aTsGUDS3sEnfmLcYnBzXhUmtjYodv2itZiJcovmXqK6fM9KRJXRPKqV_mGb5eU3Dtd1OB_q5b7NC8OWU-JphoST9ep_Bbt9OvxdrNNpxGwSF4-f44XMeFKUHZh23ByLuzzQ7v20BLQ2AsVf1YBDuQFN42Z\" target=\"_blank\" rel=\"noopener\">recent research<\/a><\/span><span style=\"color: #1d2228;\"> from Knight Frank reveals that, \u2018since the turn of the year, investment in the capital\u2019s real estate has quadrupled compared with the first quarter of 2021\u2019, and \u2018the value of deals is \u00a31 billion above the average over the past 10 years\u2019.\u00a0<\/span><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-family: Verdana, Geneva, sans-serif; font-size: 13px;\">Demand from tenants is likewise buoyant. One of the UK\u2019s largest property companies, Landsec, has <span style=\"color: #45818e;\"><a style=\"text-decoration: underline; color: #45818e;\" href=\"https:\/\/www.theguardian.com\/business\/2022\/may\/17\/landsec-london-office-leasing-profit-bluewater-trinity-leeds\" target=\"_blank\" rel=\"noopener\">reported<\/a><\/span><span style=\"color: #121212;\"> \u2018record office leasing in London as the lifting of Covid restrictions fuels a <\/span><a style=\"color: #121212;\" href=\"https:\/\/www.theguardian.com\/business\/2021\/nov\/16\/landsec-profit-office-piccadilly-lights-bluewater\" target=\"_blank\" rel=\"noopener\">return of workers <\/a><span style=\"color: #121212;\">and a surge in demand for prime space\u2019. At Articus Finance, we\u2019re seeing more enquiries than ever before for commercial property mortgages as both private and institutional investors demonstrate their appetite for this market.\u00a0<\/span><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #121212; font-family: Verdana, Geneva, sans-serif; font-size: 13px;\">The conclusion? If you\u2019re looking to invest in commercial property, now is a good time to ride the upward swing.\u00a0<\/span><\/p>\n<p style=\"text-align: center; font-size: 16px;\"><span style=\"color: #134f5c; font-family: Verdana, Geneva, sans-serif;\"><strong>How do I arrange a commercial mortgage?\u00a0<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-family: Verdana, Geneva, sans-serif; font-size: 13px;\">Whether you\u2019re eager to invest for the first time, are expanding your portfolio, or want to refinance an asset, you\u2019ll need a commercial mortgage. Commercial mortgages \u2013 a type of finance used to purchase or refinance the premises of a business \u2013 can be used on a wide range of property types. Brokers in the Articus team regularly arrange commercial mortgages against property including but not limited to:<\/span><\/p>\n<ul style=\"text-align: justify;\">\n<li aria-level=\"1\"><span style=\"font-family: Verdana, Geneva, sans-serif; font-size: 13px;\">Offices and office blocks<\/span><\/li>\n<li aria-level=\"1\"><span style=\"font-family: Verdana, Geneva, sans-serif; font-size: 13px;\">Shops or retail units<\/span><\/li>\n<li aria-level=\"1\"><span style=\"font-family: Verdana, Geneva, sans-serif; font-size: 13px;\">Leisure facilities<\/span><\/li>\n<li aria-level=\"1\"><span style=\"font-family: Verdana, Geneva, sans-serif; font-size: 13px;\">Warehouses and industrial buildings<\/span><\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><span style=\"font-family: Verdana, Geneva, sans-serif; font-size: 13px;\">The best way to arrange <a href=\"https:\/\/www.articusfinance.com\/fr\/commercial-mortgages\" target=\"_blank\" rel=\"noopener\"><span style=\"text-decoration: underline; color: #45818e;\">commercial property finance<\/span><\/a> is to work with a specialist broker. Unlike residential mortgages, which can often be arranged directly with the lender, the majority of commercial lenders don\u2019t advertise their rates openly. Accordingly, many deals can only be accessed via an intermediary such as Articus.\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-family: Verdana, Geneva, sans-serif; font-size: 13px;\">A broker can also help you navigate the various complexities involved in submitting a commercial mortgage application. Securing the best deal for a commercial mortgage involves preparing carefully, presenting your case in the best possible light, and negotiating with the right lender.\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-family: Verdana, Geneva, sans-serif; font-size: 13px;\">Lenders typically want to see that you have a reliable tenant with a long-term tenancy agreement in place before offering you a commercial mortgage. This gives peace of mind that you\u2019ll be able to service the loan, whether you\u2019re purchasing a new commercial property or refinancing an existing asset. There are many other legal and administrative considerations in addition to this, and Articus can help present your case in the best light.\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-family: Verdana, Geneva, sans-serif; font-size: 13px;\">If you don\u2019t have a tenancy agreed (perhaps in the case of an asset you already own and need to refinance) it is still possible to proceed, but this is likely to be a far more complex process.\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-family: Verdana, Geneva, sans-serif; font-size: 13px;\"><strong><span style=\"color: #000000;\">How do I secure the best deal for a commercial mortgage?<\/span>\u00a0<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-family: Verdana, Geneva, sans-serif; font-size: 13px;\">Commercial property mortgages have always been more expensive than <a href=\"https:\/\/www.articusfinance.com\/fr\/mortgages\" target=\"_blank\" rel=\"noopener\"><span style=\"text-decoration: underline; color: #45818e;\">residential mortgages<\/span><\/a>, as they represent a greater risk for the lender. And, just as residential mortgages are increasing in price due to base rate rises, the cost of commercial property mortgages is also edging up.\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-family: Verdana, Geneva, sans-serif; font-size: 13px;\">That doesn\u2019t seem to be dampening market enthusiasm for commercial property investment: many commercial assets actually offer a higher yield than <a href=\"https:\/\/www.articusfinance.com\/fr\/buy-to-let-mortgages-in-the-uk\" target=\"_blank\" rel=\"noopener\"><span style=\"text-decoration: underline; color: #134f5c;\">buy-to-let properties<\/span><\/a>, meaning they\u2019re a favourable option for those looking to turn a profit from property. However, the changing market does mean it\u2019s worth thinking very carefully about the financing of your commercial asset.\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-family: Verdana, Geneva, sans-serif; font-size: 13px;\">Many commercial mortgages are paid at a variable rate, with the rate quoted at X% over the base rate. But fixed rate mortgages are available for commercial property investors \u2013 which is increasingly desirable at a point in time when interest rates are rising fairly regularly.\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-family: Verdana, Geneva, sans-serif; font-size: 13px;\">Either way, using a broker who can negotiate the best deal on your behalf is critical. Even small savings on your interest rate can have a big impact on your ultimate margins.\u00a0<\/span><\/p>\n<p style=\"text-align: center; font-size: 16px;\"><span style=\"color: #134f5c; font-family: Verdana, Geneva, sans-serif;\"><strong>Looking for further guidance?\u00a0<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-family: Verdana, Geneva, sans-serif; font-size: 13px;\">Securing any form of specialist finance can be complicated \u2013 and commercial finance is no exception. Whether you\u2019re purchasing or refinancing a commercial asset, the Articus team are on hand to help you secure the best possible deal in the fastest possible timeframe, so you can maximise the return on your investment.\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-family: Verdana, Geneva, sans-serif; font-size: 13px;\">Want to learn more about our <a style=\"text-decoration: underline;\" href=\"https:\/\/www.articusfinance.com\/fr\/commercial-mortgages\" target=\"_blank\" rel=\"noopener\"><span style=\"color: #45818e;\">commercial <\/span><span style=\"color: #45818e;\">finance<\/span><\/a> offering? Speak to an <a style=\"text-decoration: none;\" href=\"https:\/\/www.articusfinance.com\/fr\/contact#contact-form\" rel=\"noopener\"><span style=\"color: #45818e; text-decoration: underline;\">Articus broker today<\/span>. <\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>After a rocky few years during the pandemic, the commercial property market has proven its resiliency in recent months, with strong property price growth, rent price growth, and high demand for tenancies. According to recent figures from the CBRE from early 2022:<\/p>\n","protected":false},"author":1,"featured_media":10165,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","footnotes":""},"categories":[63],"tags":[],"class_list":["post-13795","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.articusfinance.com\/fr\/wp-json\/wp\/v2\/posts\/13795","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.articusfinance.com\/fr\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.articusfinance.com\/fr\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.articusfinance.com\/fr\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.articusfinance.com\/fr\/wp-json\/wp\/v2\/comments?post=13795"}],"version-history":[{"count":1,"href":"https:\/\/www.articusfinance.com\/fr\/wp-json\/wp\/v2\/posts\/13795\/revisions"}],"predecessor-version":[{"id":20807,"href":"https:\/\/www.articusfinance.com\/fr\/wp-json\/wp\/v2\/posts\/13795\/revisions\/20807"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.articusfinance.com\/fr\/wp-json\/wp\/v2\/media\/10165"}],"wp:attachment":[{"href":"https:\/\/www.articusfinance.com\/fr\/wp-json\/wp\/v2\/media?parent=13795"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.articusfinance.com\/fr\/wp-json\/wp\/v2\/categories?post=13795"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.articusfinance.com\/fr\/wp-json\/wp\/v2\/tags?post=13795"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}