Commercial Property Investor Podcast

This time, we explore the relationship between flexible office spaces and startups. Are Flexible spaces really full of start ups and new businesses?  Drawing from my own experiences running business accelerators, I discuss the benefits and downsides of working with startups in commercial properties, and emphasise the importance of balance and the need for a mix of startups and mature businesses in creating a harmonious ecosystem.  KEY TAKEAWAYS Startups are not the exclusive customers of flexible office spaces. While startups do find a nurturing environment in flexible spaces, there are also many established businesses and corporates that use these spaces. Startups bring an infectious energy and innovative spirit to the workspace, making them fun to be around and inspiring for other businesses. Supporting startups in their journey to become sustainable businesses is crucial. This can be done by providing flexible solutions as they grow and evolve, such as offering private spaces and meeting rooms. It is important to have a balance between startups and established businesses in a flexible space. This prevents constant churn and ensures a more stable cash flow. BEST MOMENTS "While it's true that startups do often find a nurturing environment in flexible spaces, particularly ours, of course, it's far from the whole story."  ""Startups are limited to the tech realm". Well, that's just not true. They can be found in lots of different sectors, each offering unique benefits to us as providers of space."  "And I think it's just part of life's ever-expanding tapestry, right? Sometimes when you put things out into the universe, it does pay you back."  "So, if you're thinking about your own premises and you're thinking, right, I need to find loads of new businesses and startups, that's my focus, that is not strictly correct. You need a good balance and established businesses and corporate business will take space with you." JOIN THE NETWORK If you want to learn more about investing in Commercial Property why not consider joining the CPI Network? A community of active investors who collaborate, share experiences and empower each other in their Commercial Property endeavours. Useful Links: CPI Website - https://commercialpropertyinvestor.co.uk/Our Sponsors -  https://commercialpropertyinvestor.co.uk/podcast-sponsors/Property Investing, Commercial Real Estate, Strategies, CMO, Lease, Licence Agreement, Cashflow, Vacancy rates, Agents, Best Commercial property podcast, how to buy, Valuations, ROI, residential, assets, Flexspace, office space, How to get started: https://www.commercialpropertyinvestor.co.uk/See omnystudio.com/listener for privacy information.

This time round, I'm joined by Paul Million, a seasoned landlord and developer, to discuss various topics, including Paul's background in property investment, his portfolio of over 80 properties, and his experience with commercial conversions and HMOs. We delve into a specific project Paul worked on, an 8-bed scheme in Darlington, and the challenges he faced with planning. Paul shares his decision-making process for prioritising projects and his commitment to delivering high-quality finishes.  KEY TAKEAWAYS Paul has a knack for creative deals and has used various strategies such as deferred considerations, purchase lease options, and handshakes to acquire properties. Paul has faced challenges with planning permission, particularly with issues like parking and nutrient neutrality, but has successfully navigated through them by appealing and finding alternative solutions. Paul prioritises projects based on factors such as ROI, demand in the area, and the potential for success. He also considers the expertise and capabilities of his team and partners. Delivering high-quality finishes in his projects has allowed him to achieve higher rental rates and stand out in the market. He values attention to detail and takes pride in the aesthetics of his properties. BEST MOMENTS "Nutrient neutrality is certain, I think it's about 74 or 76 local planning authorities around the country... It's so utterly no common sense frustrating for developers."  "I had the former creative director of Malmaison Hotels around at this 8-bed HMO the other day... He said, you know what, in 17 years of developing hotels, I've never seen a finish quite so good as what you're getting here."  "I've got a 10,000 square foot, beautiful stone built school and maternity hospital in Bishop Auckland... You know, Jonathan Ruffer had just spent 200 million pounds of his own money in the town centre. It was up and coming."  "I'm saying to my barrister, I'm about to do a lot of PR, I'm a bit of a PR person, you know, I think we need to tell the world what's happening here."  JOIN THE NETWORK If you want to learn more about investing in Commercial Property why not consider joining the CPI Network? A community of active investors who collaborate, share experiences and empower each other in their Commercial Property endeavours. Useful Links: CPI Website - https://commercialpropertyinvestor.co.uk/Our Sponsors -  https://commercialpropertyinvestor.co.uk/podcast-sponsors/Property Investing, Commercial Real Estate, Strategies, CMO, Lease, Licence Agreement, Cashflow, Vacancy rates, Agents, Best Commercial property podcast, how to buy, Valuations, ROI, residential, assets, Flexspace, office space, How to get started: https://www.commercialpropertyinvestor.co.uk/See omnystudio.com/listener for privacy information.

I talk once more to Mark Homer about the current economic situation and its impact on the property market. We discuss the unpredictability of the market and the uncertainty surrounding interest rates. Mark shares his thoughts on the potential fall in residential values due to affordability issues and the increasing number of people coming off fixed-rate mortgages. We also touch on the effects of the pandemic on different sectors, such as retail and industrial properties.  KEY TAKEAWAYS Residential values are expected to fall further due to affordability issues and more people coming off fixed rates. The current economic situation is uncertain, and even the Bank of England doesn't know what will happen in the short term. Interest rates have increased significantly, leading to higher mortgage payments for homeowners and higher car finance rates. The commercial property market has seen a drop in values, particularly in the industrial sector, while retail has been hit harder. Investors should be actively looking for opportunities, as residential prices are likely to continue falling, and next year may offer the best deals in years. BEST MOMENTS "I suspect residential values will fall some more because affordability, whilst it's stretched, probably is going to get more stretched because more people are going to come off the fixed rates."  "We should probably have been in recession by now, but obviously that's not happened. It's just another example of how hard it is to predict this stuff." "I don't think the Bank of England know what's about to happen. So how any of the rest of us are supposed to know, I have no idea."  "I think next year will be the cheapest time to buy, you know, for many, many years. I think next year, the deals you'll do next year will be, I imagine, the best deal."  "There's always deals out there, even in a really frothy market. It's just how hard you look, how many people you talk to, how many agents you've got on the go."  JOIN THE NETWORK If you want to learn more about investing in Commercial Property why not consider joining the CPI Network? A community of active investors who collaborate, share experiences and empower each other in their Commercial Property endeavours. Useful Links: CPI Website - https://commercialpropertyinvestor.co.uk/Our Sponsors -  https://commercialpropertyinvestor.co.uk/podcast-sponsors/Property Investing, Commercial Real Estate, Strategies, CMO, Lease, Licence Agreement, Cashflow, Vacancy rates, Agents, Best Commercial property podcast, how to buy, Valuations, ROI, residential, assets, Flexspace, office space, How to get started: https://www.commercialpropertyinvestor.co.uk/See omnystudio.com/listener for privacy information.

This time, I aim to demystify the different types of commercial property arrangements: leased space, service space, managed space, and flex space. I'll break down each type and explain their distinctions, highlighting the benefits and considerations for businesses and investors.  KEY TAKEAWAYS The different types of commercial space arrangements include leased commercial space, serviced commercial space, managed commercial space, and flex space. Leased commercial space involves renting a physical space from a landlord for a fixed term, with the tenant responsible for managing and maintaining the space. Serviced commercial space offers fully furnished and equipped office spaces with various services included, providing a turnkey solution for businesses. Managed commercial space combines elements of lease space and service space, where the property owner or a third-party manager takes care of facility management while the tenant retains control over their individual office space. Flex space encompasses various flexible arrangements, such as co-working spaces, allowing businesses to rent workspace on a short-term or as-needed basis. BEST MOMENTS "It really frustrates me how many words and acronyms and different forms of foreign language that are used in this industry."  "And the flex space often offers shared amenities and generally tries to provide a collaborative environment, making it attractive to startups, freelancers, small businesses."  "The lease space offers that maximum control for businesses, but it does require long-term commitment and operational responsibility."  "Managed space offers that balance between control and shared facility management." JOIN THE NETWORK If you want to learn more about investing in Commercial Property why not consider joining the CPI Network? A community of active investors who collaborate, share experiences and empower each other in their Commercial Property endeavours. Useful Links: CPI Website - https://commercialpropertyinvestor.co.uk/Our Sponsors -  https://commercialpropertyinvestor.co.uk/podcast-sponsors/Property Investing, Commercial Real Estate, Strategies, CMO, Lease, Licence Agreement, Cashflow, Vacancy rates, Agents, Best Commercial property podcast, how to buy, Valuations, ROI, residential, assets, Flexspace, office space, How to get started: https://www.commercialpropertyinvestor.co.uk/See omnystudio.com/listener for privacy information.

I'm joined by property investor Mark Homer, who discusses a fascinating commercial property project in Peterborough. The project involved the redevelopment of an 80,000 square foot department store that had been vacant since Marks and Spencer's moved out in 2015. Mark shares the challenges he faced in acquiring the property and navigating the planning process. He also reveals how the original main contractor went into administration, forcing him to create his own building company to complete the project.  KEY TAKEAWAYS Mark had to overcome challenges with financing and finding the right team to complete the project successfully. Mark emphasises the importance of understanding permitted development rights and leveraging them to maximise the value of the property. The initial investment strategy had to be adapted based on the local market and available opportunities. There were many setbacks that Mark had to face, such as the main contractor going into administration, but he was able to pivot and build the project himself with his own team. Mark highlights the importance of managing health and safety regulations and having a dedicated team to ensure compliance throughout the construction process. BEST MOMENTS "What sort of really got me into it was I saw these permitted development rights and the vendors, well, they didn't get that."  "I thought, maybe this is the thing to do. I said, yeah, that's where I was getting to. So that's what I did." "I've got a health and safety consultant every two weeks on site for a report. Every single thing on there that's amber or red, I'd want it all."  "I've had main contractors lying to me for years about all sorts of stuff and creating stress. Because they're that middle party. Everything then becomes more opaque."  "So we went to the first one's house, and his wife was there. I had his address from somewhere. I think I did a bit. I stayed at 192, you know, company's house, whole lot, got his home address, went round."  JOIN THE NETWORK If you want to learn more about investing in Commercial Property why not consider joining the CPI Network? A community of active investors who collaborate, share experiences and empower each other in their Commercial Property endeavours. Useful Links: CPI Website - https://commercialpropertyinvestor.co.uk/Our Sponsors -  https://commercialpropertyinvestor.co.uk/podcast-sponsors/  Property Investing, Commercial Real Estate, Strategies, CMO, Lease, Licence Agreement, Cashflow, Vacancy rates, Agents, Best Commercial property podcast, how to buy, Valuations, ROI, residential, assets, Flexspace, office space, How to get started: https://www.commercialpropertyinvestor.co.uk/See omnystudio.com/listener for privacy information.

This time, I'm discussing the importance of accurately evaluating build or redevelopment costs in commercial real estate, looking at the common mistake of applying residential or buy-to-let costing ideas to commercial properties and emphasising the need to understand the market demand and the quality of the final product. I'll delve into the various factors that can significantly impact build costs, such as roof repairs, heating system upgrades, window replacements, energy efficiency requirements, fire system installations, and more. KEY TAKEAWAYS Evaluating bill costs in commercial property investment requires a different approach than residential or buy-to-let experiences. New investors often make the mistake of applying residential costing ideas to commercial properties, leading to unrealistic expectations. When evaluating bill costs, it is important to consider three main factors: the quality of the final product, the actual build cost required for that specification, and the market demand and willingness to pay for the product. Finding the right balance between these factors is crucial for optimising return on investment. Building or redevelopment costs can vary significantly depending on factors such as roof replacement, asbestos removal, heating system upgrades, window replacements, energy efficiency requirements, insulation, fire system installation or upgrades, toilet upgrades, and technology requirements. Budgeting for build costs in commercial properties can range from £200 to £800 per square meter, depending on the location and specification. It is important to have a realistic understanding of these costs to avoid underspending or overspending on the refurbishment. BEST MOMENTS "Their expectations can be way off. And that's often due to applying costing ideas that they've built up from residential or buy-to-let experiences."  "So what are some of the things that might need to be thought about in terms of build cost?" "I would budget between £200 a square metre to £800 a square metre. That is what we have spent." "I think it'll have a shorter shelf life and a poorer building will cost a lot to bring up to that four-star potential." JOIN THE NETWORK If you want to learn more about investing in Commercial Property why not consider joining the CPI Network? A community of active investors who collaborate, share experiences and empower each other in their Commercial Property endeavours. Useful Links: CPI Website - https://commercialpropertyinvestor.co.uk/Our Sponsors -  https://commercialpropertyinvestor.co.uk/podcast-sponsors/Property Investing, Commercial Real Estate, Strategies, CMO, Lease, Licence Agreement, Cashflow, Vacancy rates, Agents, Best Commercial property podcast, how to buy, Valuations, ROI, residential, assets, Flexspace, office space, How to get started: https://www.commercialpropertyinvestor.co.uk/See omnystudio.com/listener for privacy information.

I talk to Zoe Ellis-Moore from Spaces to Places, a company that specialises in helping businesses in the flexible office sector. We talk about the importance of branding and marketing for businesses that want to scale beyond one location, and explore the challenges and considerations for businesses starting out with one location and the need to establish a strong brand identity.  KEY TAKEAWAYS When starting out with one location, it is still important to consider branding. Understanding your audience and their needs is crucial, even at the early stages. Developing a strong brand becomes even more important when scaling beyond one location. Consider the format and unique selling propositions (USPs) of your brand to differentiate yourself from competitors. Documenting processes and creating a playbook can help streamline operations and ensure consistency as you grow. This includes having a clear brand message and using boilerplate copy to communicate effectively. In rural areas or locations with less competition, there may be more opportunities to share your brand's personality and connect with the local community. Utilise signage, partnerships, and social proof to establish your presence and build trust with potential customers. BEST MOMENTS "It's always brand to sales, that's what we're trying to do."  "First impressions count so much in this industry."  "The biggest lesson is pre-sales with office space or flex office, even co-working, telling people it's coming in advance."  "Differentiation can be your client type or your price point as well." JOIN THE NETWORK If you want to learn more about investing in Commercial Property why not consider joining the CPI Network? A community of active investors who collaborate, share experiences and empower each other in their Commercial Property endeavours. Useful Links: CPI Website - https://commercialpropertyinvestor.co.uk/Our Sponsors -  https://commercialpropertyinvestor.co.uk/podcast-sponsors/Property Investing, Commercial Real Estate, Strategies, CMO, Lease, Licence Agreement, Cashflow, Vacancy rates, Agents, Best Commercial property podcast, how to buy, Valuations, ROI, residential, assets, Flexspace, office space, How to get started: https://www.commercialpropertyinvestor.co.uk/See omnystudio.com/listener for privacy information.

I share some invaluable insights I recently gained upon my travels, focussing on topics such as selling, writing a book, raising finance, big projects, project management, social media insights, and build costs. I reflect on the importance of being unapologetic about selling and seeking feedback on sales techniques, and highlight the value of knowing exactly what you're offering investors and the need for consistent and extensive networking when raising finance.  KEY TAKEAWAYS I received a nudge from a friend to be more unapologetic about selling and to focus on writing a book. This insight highlights the importance of being clear about what you offer and seeking feedback from others. I learned valuable insights about raising finance from a podcast guest. This included the importance of being clear about what you're offering investors and the need to have numerous meetings and ask for referrals to expand your network. After a discussion with a developer about the role of main contractors in projects, it was suggested that, with the right team and support from experts in areas like health and safety, individuals can still act as the main contractor, rather than outsourcing this role. Start with the title or headline first and then build the content around it, rather than the other way around. This approach can help ensure that the content is engaging and attracts attention. BEST MOMENTS "I should be more unapologetic about selling."  "Know exactly what you're about and what you're offering investors. Be very clear. No wishy-washy here." "Always pick the title first, then build the content around that."  "We all need to get a good handle on these numbers and how different spends can affect the quality of the final product." JOIN THE NETWORK If you want to learn more about investing in Commercial Property why not consider joining the CPI Network? A community of active investors who collaborate, share experiences and empower each other in their Commercial Property endeavours. Useful Links: CPI Website - https://commercialpropertyinvestor.co.uk/Our Sponsors -  https://commercialpropertyinvestor.co.uk/podcast-sponsors/Property Investing, Commercial Real Estate, Strategies, CMO, Lease, Licence Agreement, Cashflow, Vacancy rates, Agents, Best Commercial property podcast, how to buy, Valuations, ROI, residential, assets, Flexspace, office space, How to get started: https://www.commercialpropertyinvestor.co.uk/See omnystudio.com/listener for privacy information.

In this episode I am joined again by my good friend Jamie Fraser, who shares an update with us on the last two years of trading. He previously shared his experience of transforming a 500-year-old castle into an exclusive rural wedding venue. We discuss the challenges the team have faced during the last two-years, including lots of building challenges, operational lessons and navigating the aftershock of the pandemic. He also highlights the unique approach they take, offering a more relaxed and personalised wedding experience, and emphasises the importance of creating a space where guests can come together and enjoy each other's company.  KEY TAKEAWAYS Wedderlie has successfully established itself as a residential wedding venue, attracting couples who want to bring their loved ones together for a weekend of celebration and relaxation. The venue offers exclusive use of the property, including accommodation for up to 54 people (excluding babies), two barns, and additional outdoor spaces. The venue has seen a steady increase in bookings and inquiries, with couples booking weddings up to 2026. The owners are continuously evaluating their pricing and value proposition to ensure they are competitive in the market. The owners have learned from quickly from initial mistakes and have made massive improvements to the property. They continue to invest in the venue to enhance the overall experience for couples and their guests. BEST MOMENTS "We're semi-DIY, so we still employ two full-time events coaches."  "We're sold out for next year, which is great. We are halfway through 2025 with bookings. We've just experienced our best week yet for inquiries."  "We're twice what we charged for our initial bookings. Compared to many other options out there, we're very reasonable for what we offer."  JOIN THE NETWORK If you want to learn more about investing in Commercial Property why not consider joining the CPI Network? A community of active investors who collaborate, share experiences and empower each other in their Commercial Property endeavours. Useful Links: CPI Website - https://commercialpropertyinvestor.co.uk/Our Sponsors -  https://commercialpropertyinvestor.co.uk/podcast-sponsors/Property Investing, Commercial Real Estate, Strategies, CMO, Lease, Licence Agreement, Cashflow, Vacancy rates, Agents, Best Commercial property podcast, how to buy, Valuations, ROI, residential, assets, Flexspace, office space, How to get started: https://www.commercialpropertyinvestor.co.uk/See omnystudio.com/listener for privacy information.

This time I'm joined by James Rankin of Instant Group to discuss the latest report on the flex space market in the UK. Instant Group is a leading provider of data insights and consultancy in the flexible workspace industry, and James shares insights from the report, highlighting the current challenges and trends in the market. We discuss the shift in occupancy, the demand for sustainability, and the importance of differentiation in the industry. We also touch on the increasing involvement of landlords in the flex space market and the potential for future growth.  KEY TAKEAWAYS The flexible workspace market in the UK is facing challenges in terms of slow demand recovery post-COVID, profitability being squeezed, and difficulty in increasing rates. The occupancy rates in the UK flexible workspace market remain high, averaging around 80-83%, with most occupiers staying for an average of four to five years. While London has seen an increase in flexible workspace supply, there is a lack of quality flexible space in secondary and tertiary markets, leading to an imbalance in supply and demand. The shift towards sustainability is becoming increasingly important, with corporate clients prioritising sustainability metrics and demanding data on emissions and other sustainability factors from flexible space providers. BEST MOMENTS "We're in a tough market right now, whether you're in the traditional sector or the flexible workspace sector."  "We're seeing occupancy rates in the UK remain at some of the highest levels that we've ever seen, averaging around 80 to 83 percent across the UK." "A 10% shift in occupancy from traditional to flex space would require a 5.2 multiple increase of the current flexible supply across the UK to get to that demand level." "It's the sort of thing that people are really caring about right now." www.theinstantgroup.com for Office statistics and data. www.instantoffices.com for office space search. JOIN THE NETWORK If you want to learn more about investing in Commercial Property why not consider joining the CPI Network? A community of active investors who collaborate, share experiences and empower each other in their Commercial Property endeavours. Useful Links: CPI Website - https://commercialpropertyinvestor.co.uk/Our Sponsors -  https://commercialpropertyinvestor.co.uk/podcast-sponsors/Property Investing, Commercial Real Estate, Strategies, CMO, Lease, Licence Agreement, Cashflow, Vacancy rates, Agents, Best Commercial property podcast, how to buy, Valuations, ROI, residential, assets, Flexspace, office space, How to get started: https://www.commercialpropertyinvestor.co.uk/See omnystudio.com/listener for privacy information.