Considering a career in office space investment?

Career in Office Space Investment

Most businesses need office space and whether it is for a small but growing venture or a much larger national or international company, the right space is an essential part of forward planning. Providing appropriate office space offers good opportunities for investors, for those keen to develop a closer understanding of how investments can be profitable and those who wish to make a career in the field.

Career development

Embarking on a career in office space investment requires certain skills to be in place at the outset. A university degree that demonstrates an ability to work with figures and an understanding of how businesses operate and make a profit is an attraction when working to get a foot on the ladder in a property investor’s office. A keen eye for the requirements of a wide range of business needs for office space is essential, and the ability to talk to people at all levels and to sell the properties available is one of the most important skills to possess.

Comprehensive knowledge of the legal requirements of leases, what types of leases are available in terms of business development and how to factor in break clauses, reassignment, insurance and repairing options, are an added bonus when applying for employment with an investment company.

The office space investment business can be cyclical, with demand falling at times of economic difficulty and rising rapidly when conditions improve, so the savvy operator will analyse the market and be able to determine in what sectors growth is most likely to occur. That knowledge will help identify commercial properties that can be let or sold quickly, increasing the profits for the investment company.

By doing the basics at an early stage, for example, cold calling business owners and managers to see if they are considering expansion, investigating the local market thoroughly in terms of availability, sizes of space and price, it is possible to build a career in the industry more quickly than might be expected.

Long hours frequently come with the territory, especially as some clients may only want contact outside their own business hours. A positive approach to hard work and a passion for the needs of clients opens up opportunities to move up the business and, eventually, perhaps to start a new property investment company with the possibility of making a lot of money from sound investments.

Options for careers in office space development

Office space development businesses tend to be located in cities or large towns, where there is a need for a good transport and communications infrastructure and all the facilities that employees require to support their working lives. Smart and modern developments are major factors in attracting tenants, with offices to let Reading providing resources that businesses need, coupled with an educated workforce that can help those businesses to grow quickly.

Some office space developers may concentrate on specific market areas, such as construction or leisure operators, and there are opportunities to develop niche markets for the legal and financial professions, call centre operators or the medical sector.

Investing in commercial property can have its risks, but developing a career in the business and getting to understand its complexity can lead to profitable and long-term personal success.

The outlook for the London property investment market

london property investment market

London Property Investment

For many years London has been viewed as a haven for domestic property investment. With capital value and rental growth consistently outperforming elsewhere in the UK it has attracted continual investment from both home investors and those overseas. Now a new report from Savills research suggests that prime market price growth may be on hold, at least for now.

Recent figures from the firm show that the London market enjoyed growth of 0.9 per cent in the second quarter of 2012. However, annual price growth for the year stood at six per cent – the lowest level since September since 2009. This would suggest that heat in the market has dwindled somewhat, but the group insists London is still a solid choice for investment prospects.

It is now three years since the markets bottomed out and we’ve seen a period of intense activity and price growth, but it now seems unlikely that the market will have the capacity for further price growth in the short term,” said Lucian Cook, director of Savills research.

Mr Cook explained that many factors had contributed to this slowing of growth, including the current instability in the eurozone and the changes in stamp duty implemented on properties sold for £2 million and above. That said, the core central markets and prestigious postcode areas continue to hold their appeal, particularly to international investors. Chelsea, Mayfair, Belgravia and Knightsbridge all enjoyed growth of 1.2 per cent or above in the second quarter and averaged an annual growth level of 8.9 per cent and are now an impressive 24.2 per cent above peak.

At the top end of the market, ultra-prime properties – those priced at £10 million and over – saw marginal growth of 0.2 per cent in the quarter. Though this at first appears to be a low level rise, it comes alongside an annual growth of 8.6 per cent year-on-year, outperforming the rest of the market.

The continued interest from overseas investors in market has begun to make an impact on the rental market, according to the group. Figures show that annual growth in the annual prime London rental market has slipped into negative territory for the first time in two years due to a 0.4 per cent decline year on year. The firm in part attributes this drop to the rising stock levels within prime London brought about by overseas investors bringing their rental property to market. A shift in the overall renting demographic in London is also said to have played its part, with fewer tenants from the financial and business services sector coupled with an increase in rental demand from young professionals.

Mr Cook explained: “The profile of tenants has changed as a direct consequence of weakened sentiment, with a notable decrease in big ticket tenants employed in the financial sector in the prime central and east of City markets of Canary Wharf and Wapping. As such, there are a number of new and increasingly localised market forces being seen in the capital.”