Commercial Property Investor Podcast

In this special episode, I sit down with Freddie Forde, the founder of Patch, a unique co-working and community space company, to discuss Patch's mission to create opportunity for people, work, and community on every high street in the UK. Freddie shares insights into his model of repurposing defunct buildings in towns and villages, offering flexible workspace and public access to events, retail, and cultural spaces. He also delves into the importance of finding the right investors who align with Patch's values and the challenges and strategies involved in raising capital.  KEY TAKEAWAYS Patch's model focuses on creating opportunity for people, work, and community on every high street. They offer a mix of co-working spaces and public access areas, such as retail, event spaces, and cafes, to cater to a wide range of needs and interests. Patch aims to revitalise defunct buildings in high streets that are currently underutilised or struggling. By repurposing these buildings and creating a vibrant community hub, Patch contributes to the regeneration of local areas. The success of Patch's model relies on accessibility and visibility. They choose locations in towns and residential areas, rather than major cities, to provide workspaces and community spaces closer to where people live. The prominent and accessible nature of their buildings helps attract people and create a sense of belonging. Sustainability is a core value for Patch. They aim to create a social business that goes beyond just generating profits for shareholders. They are in the process of becoming a B Corporation, which means they consider stakeholders, the environment, and other social considerations in their operations. BEST MOMENTS "We believe we're providing the up-to-date best use for buildings that have no longer served their original purpose."  "There's a huge opportunity out here. We think we've got a pretty good chance of being kind of a winner in this new category."  "The point is that we've got the co-working operation. Yes, we're here to serve what we call the work near home opportunity."  "There's a lot of money out there to which the immediate response is like, well, where is it? Where's the yellow pages? It's not quite that simple." 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 my good friend Linda Martin to discuss her second commercial property purchase, a hair salon. Linda shares how she came across the deal and her initial plan to only purchase the building, not the business. However, after realising the potential and the loyal clientele of the salon, she decided to buy the business as well. We delve into the operational aspects of running a hair salon, including renting out chairs to self-employed stylists and providing the necessary supplies. Linda also shares her plans for optimising the space and increasing income.  KEY TAKEAWAYS The location of a commercial property is crucial for its success. In this case, the hair salon's prime location near a busy junction and close to a high school ensured a steady flow of passing trade. Buying an existing business can provide immediate rental income. By purchasing the hair salon, the host was able to generate rental income from day one, without having to wait for a refurbishment or finding new tenants. Building relationships with existing staff can help ensure a smooth transition. The host had open discussions with the salon's employees and worked out a plan for them to become self-employed, alleviating the burden of managing staff and allowing them to run their own businesses within the salon. Financing options can be flexible for smaller commercial property purchases. The host refinanced their existing commercial property to fund the purchase of the hair salon, demonstrating that smaller-scale investments can be achieved through creative financing strategies. BEST MOMENTS "I think this is such a brilliant type of commercial proposition."  "I do very little day to day… I pretty much know now that every week we have enough for a month."  "I think the majority of people who work in therapy-related businesses just want a small space and want it to be functional."  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 welcome back Steven Clark to discuss the importance of scaling in the property investment industry. We delve into the mindset shift required when transitioning from smaller residential projects to larger commercial ones, and Steven shares his own experiences of scaling up his property portfolio, including buying residential property portfolios and HMOs at a larger scale.  KEY TAKEAWAYS Scaling in the property investment industry is crucial for growth and success. It allows for increased cash flow and the ability to build a thriving business. Scaling requires a shift in mindset and thinking. It involves moving from smaller residential projects to larger commercial projects, and being open to new opportunities and challenges. Stepping stones and gradual progression are important in the scaling process. Starting with smaller projects and gradually taking on larger ones allows for the development of skills, knowledge, and confidence. Negotiation skills are essential when scaling. Pushing the boundaries and negotiating deals that may seem out of reach can lead to significant discounts and better opportunities. BEST MOMENTS "If you want to grow a property business, it has to be done at scale."  "You're on the hook for big lending, big servicing costs of debt, bigger risks on the projects, a lot of stuff that can go wrong on the actual projects."  "It's doing the do, it's taking the action and viewing these developments, viewing these opportunities."  "Be patient but be brave. Look at projects, go out and look at some of these larger deals, have those discussions and stretch the envelope, stretch your comfort zone."  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.

As promised, we're back with another round of 10 unique customer stories! From the discovery of a container repurposed for illicit substances, to our interactions with an unconventional cleaning client plus a recruitment professional known for his colourful language. We really have seen it all over the years... But that's just part of the fun when dealing with the diverse and sometimes quirky clientele in commercial property. KEY TAKEAWAYS Customers can surprise you with unexpected behaviours and situations. From storing drugs in containers to allegedly engaging in inappropriate activities in the building, it's important to be prepared for anything. Different industries and professions can have unique characteristics and quirks. Whether it's highly strung cleaning companies or therapists needing therapy themselves, understanding the specific needs and behaviours of different customer groups can help in managing relationships effectively. Some customers may have unrealistic expectations or demands. In one instance, a client assumed that a building receptionist was at their beck and call, highlighting the importance of setting clear boundaries and managing customer expectations. Cheap customers are unlikely to become well-paying customers. It's important to recognise that customers who are unwilling to pay for quality or upgrades are unlikely to change their mindset. It may be necessary to prioritise customers who are willing to invest in the services and improvements provided. BEST MOMENTS "According to the local constabulary, one of our containers was being used to store some soft drugs."  "Sometimes you buy buildings with customers in them. They're not always going to meet with what your expectations are, particularly on service moving forward."  "Can you imagine sending an email to all of your customers saying, could you please stop having sex in the toilets?"  "Cheap customers will never become well-paying customers. They're not willing to pay for quality, otherwise they might have been in it in the first place."  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 Ross Smith from Anderson Smith Insurance Brokers to discuss recent changes in Scotland regarding fire safety regulations. It may not be long until the same changes affect the rest of the UK. We delve into the new process for getting the fire brigade to respond to fire alarms, which now involves contacting key holders instead of immediately alerting the fire brigade, and also highlight the potential risks and liabilities for property owners and the importance of having a robust fire safety risk assessment and monitoring system in place.  KEY TAKEAWAYS The change in the process is aimed at reducing the number of false alarms, as 98% of fire alarm signals in Scotland are not the result of an actual fire. The new regulation applies to businesses and property owners, excluding sleeping premises such as hospitals, care homes, hotels, and domestic dwellings. Property owners now have a greater responsibility to have a robust fire safety risk assessment, create an action plan, and ensure they have a good fire monitoring system in place. The insurance industry has not yet reacted to these changes, but it is likely that there will be increased scrutiny and potential changes in insurance policies in the future as a result of any high-profile fire incidents. BEST MOMENTS "Each year across Scotland, 48,000 fire alarm signals are generated, accounting for 45% of all fire and rescue activity. Less than 2% are as a result of an actual fire."  "So getting proper assessment, making sure this doesn't happen in the first place is obvious, right?"  "This legislation is all about reducing unwanted fire alarm signals. So I think the best place to start is, again, your fire safety risk assessment, but also having a look at your actual monitors, making sure they're up to date, so you're reducing any false alarms."  "But it's just, I think there will be a case where there's going to be more tick boxes. You mentioned about fire policy, obviously that's part of the process already, right? Yeah. But how old's your system? How often is it serviced? All these sorts of things I think are going to start coming in, aren't they?" 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 exploring the famous mantra of "location, location, location" and questioning its significance in property investing. The concept of location can be misleading and oversimplified. It is super important to consider individual investment goals, investment style, and niche market.  KEY TAKEAWAYS The mantra of "location, location, location" is not the full picture when it comes to property investing. It can be misleading and oversimplified, especially for new investors. The importance of location varies depending on individual goals, investment style, and niche. It is crucial to have a clear investment criteria and strategy that aligns with the chosen location. Location matters more on a local scale rather than on a national or regional level. Understanding local nuances, such as demographics, infrastructure, local facilities, and safety, is essential for successful investments. Factors like expected returns, investment style, and understanding niche play a significant role in determining the suitability of a location. It is not solely about the national or regional rankings of "best locations to invest in." BEST MOMENTS "I think it's dangerously misleading for new investors who don't have a grasp of the wider context."  "You might get a good property, for instance, in an awesome location, but the return is likely to be subpar."  "Location matters hugely on a local scale but far less so nationally."  "The next time you hear someone emphasising the significance of location, maybe they're an amateur, maybe they're on the outside looking in, but remember that it's your individual strategy that should guide your choices."  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 discuss our occupancy rates. I'll share data from our own properties, revealing occupancy levels across various sites, and highlight the ongoing activity in the market, with multiple buildings being bought by our consultancy clients.  KEY TAKEAWAYS The commercial property market is still active and deals are happening, as evidenced by the three buildings that were recently bought by commercial property investor consultancy clients. Occupancy levels in our properties are relatively high, with an average of 92% across the sites. This indicates a steady demand for flexible workspace and storage space. It's important to understand the target market and identify gaps in the market demand. This includes considering factors such as quality, contractual commitment, and size of the space. There's a possibility of developing opportunities for investors to work closely on an earn and learn basis, indicating potential future collaboration and investment opportunities. BEST MOMENTS "If you can't quantify it, you can't do anything about it." "Everybody's carrying on with their legal stuff, what they want from us, the projects they're working on, the mergers they're doing, the properties they're buying, carrying on like nothing's happening."  "So it's all very well for somebody to come and have a look at space or enquiring about space, but are they actually taking it and occupying it? This one's a bit more of a lagging indicator, but it's where customers have signed and are spending their money rather than kicking tyres."  "Enquirers for flexible workspace and storage space in our part of the world are still strong. And as you've heard, occupancy is not too shabby right now either." 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 Simon Green, the Head of Business Rates at Gerald Eve to discuss the complex world of business rates and the changes that have occurred since the recent revaluation. We talk about impact of the revaluation on different sectors, the tax take on business rates, and the direction of future changes in the system, and shine a light on the proposed rating bill and its implications, including the duty to inform and the potential changes to empty rate relief and material change of circumstances.  KEY TAKEAWAYS The total tax take on business rates in the UK is around £25 billion, making it a significant source of government revenue. The recent revaluation of commercial properties resulted in an overall increase in rateable values, with industrial properties experiencing the highest growth in most areas. The government is considering changes to the rating system, including a move to a three-yearly revaluation cycle and the introduction of a duty to inform or notify the Valuation Office Agency of any changes to properties. There are concerns about the proposed changes to material change of circumstances, which may prevent ratepayers from reflecting government actions or regulations in their appeals. BEST MOMENTS "The total tax rate's around £25 billion, so it's a considerable tax income for the government." "The government's currently consulting on ways to perhaps try and reduce [empty rates], which has some fairly big implications for developers." "The principle of empty rates is perhaps the part that really needs more review."  "The current multiplier of the UBR rate is considered too high at just over 50p. So there's a call to reduce that." "The freeze continues or at the very least the multiplier is increased by a figure lower than inflation because the government has a cap of the inflation figure."  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 sharing some insightful numbers and data regarding the energy consumption and carbon emissions of our own estate. I talk about the progress made in reducing our carbon footprint over the past year and highlight the importance of striving for net-zero emissions. I'll be providing specific examples of different sites within the portfolio, detailing the electric usage and the corresponding square foot rates, as well as emphasising the impact of factors such as occupancy, winter temperatures, and customer activity on energy consumption. KEY TAKEAWAYS Energy consumption can vary significantly between different locations. It is important to analyse and understand the specific energy needs of each site in order to make informed decisions and improvements. Efficient building design and infrastructure can have a significant impact on energy consumption.  Gas heating contributes a significant portion of emissions and will need to be replaced with more sustainable alternatives, such as biomass or electric heating. However, the financial attractiveness of biomass heating has decreased, making the transition more challenging. Awareness and control of energy usage can lead to improvements. Simple measures like installing timers for extract fans or implementing energy-efficient lighting can make a noticeable difference in energy consumption. 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.

Bryn Walker joins me to delve into the world of SSAS (Small Self-Administered Scheme) pensions and their potential for investing in commercial property. We provide a recap on what a SSAS pension is and its advantages over other types of pensions, and discuss the flexibility and tax benefits of contributing to a SSAS pension, as well as the ability to transfer old pensions into a SSAS.  KEY TAKEAWAYS A SSAS (Small Self-Administered Scheme) is a type of UK pension investment product that offers more flexibility and investment options compared to personal pensions. SSAS pensions were originally designed for owner-managing directors to invest in commercial property, providing security and potential growth for their businesses. SSAS pensions can be set up with zero funds, as long as there is a plan and a sponsoring company to contribute to the pension. Commercial property investments within a SSAS can generate income and provide opportunities for entrepreneurial ventures outside of the pension. The minimum amount to start investing in commercial property through a SAS can be relatively low, with examples including lockup garages, small shops, and even repurposed public conveniences. The key is to have a vision, be creative, and find value in different types of properties. BEST MOMENTS "Don't let anybody tell you that you haven't got enough money. It's about your vision and it's about your drive and it's about your ability to find a bargain and turn it into something that will make you a profit." "The idea of being able to use an old employer's pension to essentially start and create a business for somebody now to run in their late 30s, their 40s, before pensionable age to start up another business, to become entrepreneurial again, using funds that they actually thought were locked away potentially until their 60s. These are really exciting developments." "It's not for me to tell somebody what amount of asset purchase they can find value in. If they can see value that using a pension gets them closer to their goal and we can help, then a conversation is free." "SSAS pensions certainly are coming out of the stuffy regime of pensions and actually being a tool for entrepreneurs to utilise to help grow their own businesses, which is a really exciting time for us and long may it continue." 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.