Manchester, January 2023. The one about Commercial!

Jan 23, 2023

By Alicia Barlow


PIP Mcr started off 2023 with a bang! A new presentation suite, provided by our wonderful Sponsor Together Finance, filled with inspiring and inspirational investors actively engaged in the North West property market!


Saif Rehan opened with some exciting incites into the development in Manchester City Centre, creating community, rather than just accommodation… provisions for schools, shops and high quality apartments all in one place…


HMO developments have been his bread and butter. After going through some challenges in Covid; his learning curve has been steep! He was full of ideas to make the process smoother; how you reverse engineer the development from a Tenant perspective… planning is key! Over the years, reviewing issues has led to robust processes and implementation of new technologies or systems during the build allowing for a smoother development and a reduction in maintenance issues going forward.. adding value as he goes is his USP!


He’s created some gorgeous, shared spaces in Manchester; that are high quality but incredibly functional and delivered within a reasonable budget.. bringing that bouji-pop to HMO!


Our wonderful Sponsor, Peter from The Mortgage Consultancy gave us a clear update on current mortgage rates and the forecast for 2023, with base rate potentially reaching 4.5% this year! Lenders are still in the market and he does see rates reducing over 2023 as nervousness subsides…


His advice is that Solar power, PV improvements will be a big game changer in future lending and property valuations! It is only currently a nice to have, with some lender products offering benefits for this… one to keep an eye on!


Our Main Speaker Kirsty Darkins, is a power house in the Commercial Investment space… sharing her ideas on investing in Commercial property for 2023! Sectors to watch this year are Industrial and Office, they will start to feel some pain; not just from a yield expansion perspective, but new regulations and standards for Industrial will be implemented, resulting in high maintenance costs; directly affecting the occupiers cashflow (tenants) and subsequently you the Landlord!!


Best places to invest for 2023.. will be retail on the high street – but the RIGHT high street!! This is incredibly important… Also, mixed use, new build industrial, smaller warehouse with office units & most of all CMO… commercial multiple occupation!! FRI leases, gross rents = net rents


Kirsty focused on Where to find commercial opportunities… Commercial Agents (they are lazy), make their life easier and be friends with them…


Look at what you want, faith and focus… be patient, be consistent … be boring .. but your pipeline will be booming!


Your approach to sourcing your opportunity is key, not what’s going on in the market…


Commercial Agents are tough to track down; work hard to find them, then work hard to make friends with them! Lunch out, be professional, but most importantly give them your time! Be patient, keep going… build your credibility! Relationships are vital… the Agent will help you buy the deal and get the Seller onside.


The value of commercial assets is built around the lease. One big tip is by reducing the rent cost to tenants but increasing the length of the lease or removing breaks; will add huge value to you and provide sustainable costs to the Tenant. Win-Win!


Our final speaker, Kirsty Rogers from Together, our bridging lending sponsor discussed how they are also lending on heavy refurbishments, including commercial to residential or commercial structural white boxing. A snooker hall turned bar near Everton football Club was her most recent clients project funded this way!


Todays room was buzzing with positive energy; it was a great meeting showing how our members are doing deals in a tough market / technical recession. The speakers giving us incredible ideas and techniques on how high quality HMOs and Commercial property investments will be a strong addition to your portfolio in 2023.