When it comes to commercial property, not all asset classes are equal. What attracts the highest prices varies at different periods, and new research from HARNESS Property Intelligence has recently found that restaurant property is currently on the up.
The organisation looked at the markets in Liverpool, Birmingham, Bristol, Manchester, Leeds and Cardiff between 2010 and 2017 to make its assessment.
Liverpool Business News reported on the findings, noting that commercial properties that are used by the restaurant and cafe sector have outperformed offices and retail space in this period.
In Liverpool specifically, the value per square foot for restaurants or cafes has climbed by nine per cent.
It seems that it’s office space that has seen the biggest fall in value, dropping by 18.33 per cent in the same period. Retail experienced a more modest decline of 7.8 per cent.
Chief executive of the firm Ben Mein explained there are many factors that affect the value of different classes of commercial property. He commented that the growth for restaurant premises “could partly be explained by corresponding misfortunes of the retail market, with restaurant and cafe operators able to capitalise upon falling consumer demand for traditional shop premises”.
There are also indications that the north west of England will see more commercial developments in its cities and towns in the coming years. Property Wire reported that the north west is a key area of focus for developers, with 42 per cent stating they intend to boost their level of investment here in the coming two years.
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