Developments in Newport for the Commercial Property Sector

Now Could Be the Time to Buy Commercial Property

The debate as to whether businesses should rent or buy commercial property to house their companies is neither new nor unique to South Wales. However, there is perhaps an additional dimension to be considered currently within Newport.

Newport is currently undergoing many regeneration projects which potentially could strengthen the commercial property market in the city. The Friars Walk shopping centre currently under construction together with the adjoining cinema and restaurant quarter is the key project.

The recent opening of Admiral’s 80,000 sq ft office building in the city centre, the potential phase II of the University of South Wales city campus on the waterfront and the proposed Newport Now BID are all helping to raise confidence in the city centre.

Dan Smith, director, M4 Property Consultants commented “We are experiencing increasing enquires for freehold commercial property across south Wales, but particularly in Newport.

There seems to be increased confidence in Newport and the surrounding areas, resulting in companies willing to take a long term commitment by purchasing a property.

With commercial property prices still low compared to pre-recession prices and interest rates still at an all time low, many of these companies are finding that in some circumstances it can actually prove cheaper to buy a property and pay a mortgage each month, rather than paying rent.

With confidence in the area on the rise, now could be a good time to buy commercial property, as greater demand will lead to higher prices.”

Ben Lloyd, director, Pure Commercial Finance commented on how businesses can obtain finances to buy commercial property. “In recent times businesses have struggled to find and structure solutions to access gaining finances to purchase commercial property.

The key is knowing which lenders in the commercial finance are active and not just approaching your high street bank. Knowing how to present your case to potential lenders is also crucial to make their decision to lend as easy as possible.

We are experiencing increasing enquires from businesses looking to gain finances to buy freehold properties and have an excellent success rate in finding suitable solutions for them. Lenders are

keen to lend to trading businesses more so than investors. With interest rates as they are, it is a good time to buy commercial property in Newport or elsewhere.”