Times have been tough for the UK commercial property market but with a roadmap to the post-Covid-19 era in place, there is growing optimism and a forecast of fresh growth. The big question is, where to invest? The answer: non-traditional sectors.

The coronavirus pandemic has transformed society and business in a lot of ways and the impact can be seen in the evolution of the commercial property market. While traditional sectors look to be taking a slower road to recovery, there are a number of non-traditional property investment areas that offer much brighter returns.

These are the non-traditional property sector offering good returns

In terms of industry, one of the sectors to benefit from the impact of Covid-19 has been supermarkets. Most every other type of shop has been closed, but supermarkets have kept their doors open, for obvious reasons. As a result, property in sector is performing well as the major players look to consolidate their gains.

Part of the reason why supermarkets have performed so positively is their ability to offer online services and the dramatic rise in e-commerce shopper activity. And it is the e-commerce sector that is another major opportunity for commercial property investors.

There has been a sea change in consumer behaviour and while the end of the Covid-era is likely to see some return to physical shopping, the popularity of online purchasing is set to remain strong. This makes warehousing property a target for savvy investors.

Also, as a result of the same factors, logistics space in general is also an attractive option, as an increasing amount of attention is paid to supply-chain management. Businesses of all sizes will need to address their logistics planning as they continue to adjust to the new consumer shopping landscape.

Other attractive commercial property and the view on office space

Aside from supermarkets and industrial and logistics space, the so-called new beds sector offers commercial property investors a good deal. Despite of the impact of Covid-19, student accommodation has a lot to offer, as have age care and build-to-rent living.

Indeed, the economic impact of the pandemic, including on employment, may well help drive the growth of the build-to-rent sector, with buying property even further out of the reach of a lot people, in the short term at least. This should help drive demand for rental property.

As for office space, the outlook is not quite as optimistic, but there are signs that this sector will bounce back eventually, in particular as companies re-open their doors from the second half of the year onwards.

Funding commercial property investment in 2021

The commercial property investor market has been hit been some incredible turbulence and the impact can be seen in how the opportunities for investment are shaping up in 2021. It is non-traditional property that investors should be targeting.

At the same time, the way investors are accessing finance is changing. Choosing the right commercial loan and mortgage lender remains absolutely essential, but now it is vital that this partner offers access to the services of alternative lenders: the ability to offer greater flexibility and a less automated and more personalised approach is making them increasingly attractive.

To find out more about A&T Business Associates services for commercial property investors, contact Tony Hedger on 01903 602211 or tony.hedger@atbusinessassociates.co.uk.