Afleveringen
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This time I'm talking to Alexandra Livesey from Clockwise, a company specialising in transforming historical buildings into flexible workspaces. Alexandra discusses Clockwise's rapid growth from 3 to 16 buildings (and counting) across four countries in just a few years. She emphasises the importance of understanding and respecting the local community and heritage of each building, and shares insights on incorporating hospitality experience into the real estate sector, the importance of transparency in business, and the utilisation of the metaverse for virtual meetings.
KEY TAKEAWAYS
Clockwise focuses on creating flexible workspaces that honour the history and community of each building they operate in.Clockwise's approach to building out spaces involves incorporating the local community's heritage and values, allowing for individuality and creativity among its members.Clockwise leverages transparency, scenario planning, and a strong team to drive success in the flexible workspace industry.The use of the Metaverse by Clockwise showcases innovation in connecting geographically dispersed members and enhancing emotional connections in virtual meetings.Alexandra emphasises the importance of aligning personal brand values with business ventures to ensure long-term success and growth.BEST MOMENTS
"I think every building has a purpose... So what works in Exeter doesn't work in Glasgow or in Antwerp or Brussels."
"I think it will become more and more ingrained in what we do... this new generation is growing up intuitively using not only the real world, but also this virtual world."
"You always need to know what's the worst case and how you're going to deal with it."
"The thing about the metaverse is you actually have the ability to connect better because you're not only seeing the face... The exchange of and display of emotion in that environment seemed greater."
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/
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I look into the question of whether one should go full-time in property investment. I have seen this question a few times lately and it is not about "should i quit my job", but rather should I ever go full time in property even if I have the income to do so. Drawing from personal experience and observations, I talk about the different perspectives on this topic, emphasizing the importance of understanding one's goals and circumstances before making such a decision. I'll share my own journey of transitioning to full-time property investment, the potential challenges and benefits of doing so, and the considerations regarding income, experience, and opportunities in the property industry.
KEY TAKEAWAYS
Going full-time in property should be a decision based on individual circumstances, including financial stability and long-term goals.It is essential to have a clear understanding of one's financial situation and goals before transitioning to full-time property investment.Balancing day-to-day income with long-term investment growth can be achieved through a dual strategy approach.Seeking advice and gaining experience in the property industry is crucial, especially for individuals with significant income from other sources.Collaboration and support from individuals with diverse backgrounds and experiences can be beneficial in navigating the commercial property investment landscape.BEST MOMENTS
"I've come across one or two podcasts and commentators saying that you should not be full-time in property, ever. And it made me think..."
"Full-time is the end goal and the starting point all in one. They want to be free from a boss or another business with the annoying customers and challenges it brings."
"For a lot of people, getting started in residential, they're sold, this is the outcome you're after. Get yourself free."
"The big difference for me was that I could choose to work in the business rather than invest from the outside of the business."
"It's just really important to understand where you're at and where those gaps are and try and fill them."
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 endeavors.
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/
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Zijn er afleveringen die ontbreken?
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This time, I share the top five business expenses of running a multilet commercial flexspace portfolio, incurred by our business over the past financial year. I'll provide you with a detailed breakdown of costs, including energy, staffing, interest payments, maintenance, and cleaning.
Through a comparison with the previous year, I highlight the significant increases in energy costs due to price increases and also touch on strategies for managing costs, projections for the upcoming year, and the impact of various factors on the business's financial performance.
KEY TAKEAWAYS
The top five expenses for the business were energy, staffing, interest payments, maintenance, and cleaning.
Energy costs saw a significant increase from the previous year, with wood pellets and electric expenses notably higher.
Staffing costs remained relatively stable, while interest payments saw a substantial increase.
Maintenance costs included both regular maintenance and improvements to the properties.
Cleaning expenses are surprisingly high, with additional costs for waste management.
BEST MOMENTS
"Energy didn't used to be our most expensive part of our business, but it is now and has been last year."
"I can't believe how much money we spend on cleaning."
"Our turnover is increasing. It's not quite where we've projected, but hopefully we're going to get somewhere near that."
VALUABLE RESOURCES
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/
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I welcome back Bryn Walker, who on his return to the podcast is focusing on Small Self-Administered Scheme (SSAS) pensions and their intersection with commercial property investments.
Bryn, an experienced SSAS advisor, shares insights on the flexibility and advantages of SSAS pensions for entrepreneurs. The discussion delves into topics such as the application process with HMRC, the potential pitfalls of pension scams, considerations for lending money from a SSAS, and the minimum financial requirements for setting up a SSAS.
KEY TAKEAWAYS
A SSAS pension offers flexibility for SME owners to invest in various assets beyond traditional pension options.Bryn is launching a new SSAS administration company called SSAS UK in May.Lending money back to the sponsoring employer in a SSAS comes with strict rules and considerations, such as security and interest rates.Lending money to third parties in a SSAS is seen as an investment and requires thorough due diligence and trust.The decision to set up a SSAS should be based on whether the investment justifies the annual running cost, rather than a specific minimum amount.BEST MOMENTS
"I tend to find directors of small limited companies have requirements that are over and above normal because they're entrepreneurs and they tend to look for a more interesting type of pension arrangement."
"Anything that's put in place to reduce the likelihood of a pension scam, I would have to favour."
"Everybody's circumstances are separate and different, and the way that SSAS works is complicated, and there's lots of, that lovely word, nuances, and you really need to get full and proper advice based around your circumstances."
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/
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I talk to special guest Gary Wilson, about all aspects of project development in the construction industry. Gary shares his extensive experience in construction, project management, and sales, providing valuable insights and lessons learned from his career.
We look at topics such as the challenges of managing larger developments, the importance of trust and honesty in business relationships, and the significance of meticulous planning and attention to detail in project management. Gary also shares personal stories, including his background in kickboxing and his ventures into the alcohol business.
KEY TAKEAWAYS
Gary has extensive experience in project development, starting from his background in construction and sales to his current role as a Construction Development Director at Taymouth Castle.Gary learned the hard way about the importance of trust and partnerships in business, especially from a past partnership that did not go as planned. This experience taught him to be cautious and selective in choosing business partners.Gary's involvement in various projects, such as the directional drilling under the River Tay, showcases his persistence and problem-solving skills. He faced challenges head-on and found creative solutions to ensure project success.Carefully assess opportunities, collaborate with industry experts, and take calculated risks to achieve success in all projects.BEST MOMENTS
"So the only way we can make this work is I become equity in my equity sweat, and I make this work for you, but you cut me in the deal."
"So the offer's been concluded. It's been accepted and concluded. So we've now got to put the meat on the bones and take it from there."
"If I can teach you anything about developments, it's never, ever give up. Keep going. If you've got a dream, if you've got a belief, keep going, keep at it."
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/
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In this episode, I interview Stephen Gallagher, a commercial property investor, who shares insights into his background in aerospace engineering and financial services, as well as his journey into property investment. He discusses his investment model with SSAS and details a successful project in Wishaw near Glasgow, where he transformed a CMO (Commercial Multiple Occupancy) property into a thriving serviced office space.
Stephen elaborates on the financial aspects, including valuation, rental income, and the SSAS syndication strategy used for funding. He also touches on some future projects involving boutique apartments and aparthotels.
KEY TAKEAWAYS
Stephen's investment strategy with SSAS is the prime example of how to get good returns within a pension scheme.Stephen emphasises the importance of collaborating with others in the industry, sharing knowledge, and building relationships with professionals and investors.Starting with smaller projects, like the one in Hamilton, can build confidence and provide a stepping stone for larger commercial property investments.Utilising professional services like quantity surveyors and other experts can help in navigating construction costs, planning permissions, and other challenges in property development.BEST MOMENTS
"I think engage with some folks that are doing it. I found quite a few individuals dotted around the country, around the UK, who are doing similar things who are incredibly helpful."
"I think one of the things I noticed as well going around yours, because you're getting great rates for your spaces, is when you have a very large building it's difficult to have scarcity."
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/
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Join me in this exciting episode as I sit down with Miro Miroslavov from OfficeRnD, a renowned prop tech software company. Together, we uncover the fascinating evolution of their software and highlight its crucial role in tackling the unique challenges of managing flexible workspace.
Miro guides us through the company's growth and their strategic approach of integrating with top-tier solutions, rather than striving to be an all-encompassing platform. We also explore the significance of member experience, seamless data integration, and the future of AI in the industry.
KEY TAKEAWAYS
OfficeRnD is dedicated to offering an integrated platform that empowers various teams within an organisation to make decisions and easily replace specific components of the entire solution.OfficeRnD Flex offers prop tech solutions for flexible and co-working spaces, addressing challenges such as billing, member experience, and day-to-day operations.The company is prioritising the implementation of a Data Hub to analyse and centralise data for future AI integration to enhance business decision-making.They are working on improving the member experience by streamlining on-demand product purchases and integrating with various marketplaces for increased exposure.BEST MOMENTS
"The first step for implementing AI is having very robust data. So we decided to use a new concept in the platform, something that we call Data Hub, to integrate different data pieces into one centralised place."
"One of the things that I'm still amazed at is a customer can go on our website, book up a space or a desk, pay the monies in the bank account before they turn up. It's amazing."
"Everything goes back to the culture of the organisation."
"It's going to be interesting to come back to this in like two, three years' time, just to see where we're at, particularly the AI stuff. I just think some people's impression with AI is this all-seeing, all-thinking thing."
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:
OfficeRND - https://commercialpropertyinvestor.co.uk/meet-our-partners-officernd/
Book a Demo - https://ofrnd.com/flex-demo
Our Sponsors - https://commercialpropertyinvestor.co.uk/podcast-sponsors/
CPI Website - https://commercialpropertyinvestor.co.uk/
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/
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I talk to Will Mallard about social housing in the commercial property sector. Will shares insights into the complexities of the sector, including the various categories of social housing and supported housing. He discusses how he got involved in social housing and provides examples of projects he has worked on. The conversation delves into the financial aspects of social housing, including the challenges and opportunities for investors. Will also highlights the importance of understanding the needs of local authorities and care providers when considering social housing projects.
KEY TAKEAWAYS
The social housing sector is complex, with various categories and different interpretations and applications by local authorities and NHS areas.Lenders in the social housing sector may increase interest rates and impose stricter loan-to-value ratios due to uncertainty, making it crucial to secure a stable income stream for financing.A strategy in the social housing sector involves finding the ideal customer first, purchasing properties under market value, creating paper-based uplift, and potentially holding properties long-term for income.No English local authority has ever defaulted on long lease residential or supported housing payments, providing a level of stability for investors in the sector.For more information on the social housing sector and property investment, listeners can access the "My Property World" podcast hosted by Will Mallard on various platforms like Apple Podcasts and Spotify.BEST MOMENTS
"There's approximately 200,000 people currently in supported housing of one form or another. And there's at least another 100,000 in terms of demand."
"One of the top points in this is around temporary accommodation, where there's a statutory obligation for a local authority to provide housing for anyone who presents with a housing need."
"No English local authority has ever defaulted on a long lease residential or supported housing payment. Not once."
"People are holding it for income, or the end owner, and that there's an appeal which is, I suppose, backable by a vision of a mortgage or some other lending product."
VALUABLE RESOURCES
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/
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I'm joined once again by the marvellous Dean Booty, to discuss the ins and outs of the self-storage industry. Dean shares insights into his successful self-storage business, including the expansion from three to six sites in a short period. We delve into topics such as site acquisitions, revenue management, pricing strategies, and the impact of COVID-19 on the industry. Dean also introduces his comprehensive online course covering all aspects of self-storage operations, offering a special discount for CPI-podcast listeners!
KEY TAKEAWAYS
The online course offered by Dean covers a comprehensive range of topics related to self-storage business, from finding locations to operations and marketing strategies.Dean's course provides valuable insights into revenue management, pricing strategies, and customer acquisition techniques specific to the self-storage industry.The course includes practical tools and resources, such as population and self-storage data spreadsheets, to aid in decision-making and site selection.Dean's newsletter, mrselfstorage.com, offers daily updates on revenue, quotes, conversions, move-ins, self-storage tips, and industry news, providing a valuable resource for self-storage operators.BEST MOMENTS
"That's the difference between being a super successful self-storage company or being a successful one."
"I genuinely look back and think, I am so proud of that. I'm so proud that I've done it."
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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:
DEAN'S COURSE ➡️ https://dean-booty.mykajabi.com/self-storage-secrets-2CPI 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/
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I'm joined once more by Adam Lawrence, to focus on the impact of the recent budget on property investors. We discuss various aspects such as tax thresholds, capital gains tax, multiple dwellings relief, and the potential effects of upcoming elections on the property market. Adam shares his insights on navigating the current economic landscape and offers strategic advice for property investors.
KEY TAKEAWAYS
Election Year Opportunities: Adam suggests that election years tend to offer opportunities for property transactions, especially when the election date is announced, as transactions tend to drop, presenting a window for contrarian investors to ramp up activity.Inflation and Property Ownership: Adam highlights that property owners are in a favourable position to take advantage of inflation, as property ownership is the second-best position in the economy to benefit from inflation.Commercial Property Outlook: Adam expresses a bullish outlook for commercial property, emphasising that leverage and asset acquisition in the face of inflation should ultimately work in favour of property owners.BEST MOMENTS
"I think realistically, election years as a rule tend to offer opportunities right and where the budget you can you can imagine how some of that stuff we've discussed with the budget can be used in your communication with vendors."
"The forecast looked magnificent, right? Second best people to take advantage of inflation, second best position in the economy, property owners. Very bullish, really."
"I think be ready, be ready to transact, be financially attractive. It's not the worst time in the world to be re-gearing stuff."
VALUABLE RESOURCES
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/
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I share insights into why I ventured into commercial real estate, how I found the project through networking and the process of financing the property.
I delve into the specifics of the building, its initial condition, and the gradual transformation it underwent to increase its income and value, reflecting on the lessons learned from this project, emphasising the importance of networking, not solely relying on commercial agents' advice, and the impact of increasing income on property value.
KEY TAKEAWAYS
Networking was key in finding the first commercial project, emphasising the importance of building relationships and connections in the industry.Don't solely rely on commercial agents' advice if they are not supportive, as their perspective may not align with your goals and opportunities.Luck played a role in finding a property that was the right size to afford a full-time person to manage it, allowing for scalability and growth.Increasing income can directly impact the value of the property, showcasing the potential for leveraging and enhancing returns.BEST MOMENTS
"The income affects value. So the more you can increase the income, the more down the track you can affect value and possibly leverage against that."
"I think, I'm hoping that by sharing a bit more details about that particular one, that you can see that actually there's a logic to it."
"I was scared. And the reason why I wanted a joint venture partner was because I didn't want to do it on my own. I wasn't sure if it was going to work."
"Our job on the consulting side of CPI, Commercial Property Investor, is to hold your hand through the process, to minimise the mistakes, and critically, to speed up the process."
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/
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I answer the crucial question of determining the optimal pricing for commercial spaces. I examine the significance of differentiation in setting prices and the importance of continuous testing to find the sweet spot in the market, and share insights on observing competition, exploring unique selling points, and adapting pricing strategies to suit the specific needs of the target market.
KEY TAKEAWAYS
Importance of Differentiation: Emphasise the need to differentiate your offer from the competition to justify charging a higher price.Continuous Testing: Advocate for ongoing testing of different price points and product mixes to find the optimal market price.Open-minded Pricing: Encourage flexibility in pricing strategies and avoiding rigid adherence to market norms.Utilise Scarcity and FOMO: Suggest leveraging scarcity and fear of missing out to drive decision-making and urgency among potential clients.Brand Building: Highlight the significance of building a strong brand identity to command higher prices and attract discerning clients.BEST MOMENTS
"Testing is key. Try different price points and product mixes to find the optimal market point."
"Differentiate your offer to charge a different price. Personality, design, and quality matter."
"Don't follow the market blindly. Be brave, test, and push for the optimal price."
"Scarcity, time-sensitive offers, and FOMO can drive decisions. Use these tools wisely."
"React strategically, gather information, and test again. It's a fun part of the business."
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/
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As a follow on from the episode from the 8th of Feb about hidden transaction costs, I talk through the costs and actions that need to be factored from the date of the transaction until the commercial property is refurbished and let out.
It is all the little things that add up and some new investors are not aware of when they calculate the project viability.
I cover 3 distinct parts:
Considerations when carrying out a transaction, as a buyer.Costs to account for between the purchase and build-out, essentially for professionals, which may have to come out of your pocket.Ongoing costs once you have the keys, even while the property is empty and nobody is using it.This episode is for those who want to know about any hidden costs once they are holding an unoccupied commercial property, whilst waiting for planning, building works or for a client to move in.
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/
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What are the differences between traditional asset management and the unique approach taken by CMO property development. I'll discuss the importance of adding long-term value through active redevelopment and ongoing refurbishment of neglected buildings, urging you to consider the long-term implications of certain buy and hold investment strategies and highlight the importance of actively driving value creation.
KEY TAKEAWAYS
Value Addition Over Asset Management: Add value through redevelopment and repositioning rather than just managing existing assets.Active vs. Passive Investment: This stresses the choice between actively managing the property post-redevelopment or passing it on to an agent for management.Resilience and Confidence: Develop resilience and confidence in their investment strategies despite industry norms.Control Over Market: It's vital to be in control of the value of the property rather than relying on market growth.CMO Strategy for Growth: CMO strategy allows investors with smaller pools of money to grow their asset base and leverage for future investments.BEST MOMENTS
"Asset management is the normal approach to investment properties. But some of the stuff we're buying is not graded as an investment property, investment stock."
"I'm sick of reading and hearing about asset management, or worse still, the suggestion of speculatively investing in assets that maybe in an up and coming area."
"The real business is finding older buildings that don't suit modern requirements, reconfiguring them, repositioning them for modern demand. That's the adding value bit."
"CMO for me is a fantastic strategy and it allows investors with smaller pools of money to grow up their asset base and to use leverage to then buy the next one."
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/
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I am joined by Michael Crookson to delve into the world of tech solutions for commercial properties. With over 20 years of experience, Michael shares insights on managed data, voice, and cabling solutions offered by Datel Solutions. The conversation covers the evolution of telephone systems from traditional lines to cloud-based solutions, emphasising the importance of infrastructure planning and integration for seamless operations.
We give practical advice on optimising connectivity, future-proofing buildings with Cat6 cabling, and the benefits of embracing AI and automation in property management.
KEY TAKEAWAYS
Proper planning and consideration of connectivity options are crucial before investing in a property to avoid costly infrastructure challenges later on.Emphasise the importance of future-proofing buildings by installing Cat6 cabling and structured infrastructure to support evolving technology needs.Highlight the significance of early engagement with telecom experts to streamline operations and enhance tenant experiences.Encourage developers to prioritise maintenance and refurbishment planning to avoid costly and disruptive issues in the future.BEST MOMENTS
"Technology has evolved. Back in those times, a telephone system was there to simply make and take calls. But now we're speaking to businesses about integration with third-party solutions."
"We still provide what are called SIP channels for on-premise solutions, but a SIP channel is essentially using the internet to deliver voice."
"Businesses don't pay for calls any longer. That's a thing of the past. So essentially, what we provide is a cloud license with a minutes bundle attached to it and a handset."
"I think a real buzzword at the moment is automation. It's integrating systems so that businesses can simplify operations and really enhance a customer, a client experience."
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/
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The real cost of looking after properties long term is so overlooked. It's a crucial yet often overlooked aspect of long-term property investment and it frustrates me to see investors who fail to properly consider the inevitable need for property refurbishment over time. Some base their numbers on the initial purchase and some refurbishment but no follow up costs for the medium to long term.
KEY TAKEAWAYS
Consider long-term maintenance and refurbishment costs: Investors should factor in the inevitable need for property refurbishment over time, including major expenses like boiler replacements and roof repairs.Mitigate costs through dilapidations clauses: Landlords can protect themselves by including strong dilapidations clauses in leases, ensuring tenants are responsible for maintaining the property's condition.Take deposits and set expectations: Collecting deposits from tenants and setting clear expectations for property upkeep can help cover wear and tear costs when tenants vacate the space.Establish a sink fund for maintenance: Setting aside a portion of rental income for a sink fund can help cover big-ticket maintenance items like full property refurbishments in the future.Stay proactive with maintenance: Regularly maintaining the property, addressing issues like water damage promptly, and keeping communal areas in good condition can help prolong the need for major refurbishments and preserve rental income.BEST MOMENTS
"It just frustrates me a little bit that people don't really think properly about long-term investment."
"There's some really cast iron dilapidation clauses."
"At some point you're going to need a chunk of change for a full refurb."
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/
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This time I'm joined by my CPI co-conspirator Megan Brown. We talk through the lessons we have learned from operating shared coworking spaces over the last 5 years and share some of the customer facing stories that have stuck with us. We discuss the membership models we offer and how we have responded to customer demand.
Our offer has evolved over time as we have learnt what works and what hasn’t worked for us. If you are starting out on a coworking journey then this episode should give you lots to think about. If you are already operating in this space then this episode will either have you laughing and nodding along to our trials and tribulations or at least laughing at our progress 😀
KEY TAKEAWAYS
Co-working and shared space can be a valuable addition to a building, offering a mix of memberships and types of customers.Different membership options, such as part-time and full-time, cater to varying needs and preferences of individuals and businesses.Creating a sense of community within the shared space can enhance the overall experience for members and encourage retention.Offering additional amenities like meeting rooms, phone booths, and events can increase the value proposition for members.Leveraging day passes and partnerships with local businesses can attract new customers and enhance the overall offering of the shared space.BEST MOMENTS
"It's like having a bar that has a membership. You're not just expecting people to walk in off the street."
"I mean, work is such a big part of everyone's life. They always say that you see your work colleagues just as much as you see your family."
"It's amazing that you can come in at half eight in the morning or something and there's an email saying, oh, by the way, there's another two people joining you today."
"I think that's the thing, customers generally know what they want at the end of the day."
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/
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I discuss the importance of optimising space in commercial properties, specifically focusing on the layout and placement of toilets. I look at the value of windows in office spaces and suggest considering the relocation of toilets to free up window space, as rooms with windows can be rented out at higher rates.
I also highlight the practical considerations involved in moving toilets, such as plumbing and drainage, and share my experiences and strategies for successfully reconfiguring spaces to maximise their potential.
KEY TAKEAWAYS
Optimising space in commercial properties is crucial for maximising value and attracting higher rental rates.Toilets with windows can be a wasted opportunity for valuable office space, so consider relocating toilets to free up window space.Plumbing and drainage considerations are important when moving toilets, as gravity and proper connections are necessary for effective waste management.Partitioning and designing toilets with multiple doors can help alleviate awkwardness and improve privacy for users.Utilising windows for offices can provide natural light and ventilation, reducing the need for additional ventilation systems and enhancing the overall quality of the space.BEST MOMENTS
"But the more you go through the numbers and the longer you hold on to this building, the more important it becomes that you optimise your space as best as possible."
"So, one of the things I try and do is stack the toilets, not on top of each other but per floor, so that you've got this service void that you can put your new plumbing in."
"I would really, really encourage you to try and do that because it's so important."
"When we reorganised everything, put the toilet core into a different area, opened up all those windows, changed the whole feel of that space, we're getting five times that amount."
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/
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This time, I talk about the importance of market research and due diligence when entering a new market location. I'll share six vital numbers that investors should know, including local area square foot rates, competitor occupancy levels, operating costs, build-out costs, market capital costs, and cap rates. I also provide methods for gathering this information, such as online searches, talking to agents, reviewing competition, checking out developments, and networking.
KEY TAKEAWAYS
It is important to gather information about the local area, including the square foot rate or desk rate, competitor occupancy levels, operating cost per square foot, build-out costs, market capital costs, and cap rates or yields investors are seeking.Methods to gather this information include online research, talking to agents, reviewing competition, checking out developments in the area, looking at the requirement list, placing ads, and networking.It is crucial to physically visit the area and observe what is happening on the ground and where investments are going.Negative or positive findings about an area should not immediately rule it out, as problems may lead to better opportunities.Ultimately, it is up to the individual to gather and analyse the information to make informed decisions about investing in a new market location.BEST MOMENTS
"What are the steps to ascertaining market demand in a new market location that you haven't owned anything in before?"
"Nothing beats getting in the car or on your bike if you're that way inclined, and taking a look about on the streets. Only then do you see what sidenof the tracks are better and where the investments are going."
"If an area is up and coming, there are developments going on, but maybe not too much, then you know those are some big ticks ✅ in the boxes."
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/
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I talk about the various costs involved in buying a commercial building, highlighting the importance of considering VAT, land and buildings tax, lawyer fees, title searches, finance fees, and accountant projections.
I also look at the need for surveys, feasibility studies, and insurance, and tell you why you need to be aware of ongoing costs such as utilities, fibre installation, and business rates.
KEY TAKEAWAYS
VAT (Value Added Tax) is a significant cost to consider when buying a commercial building, as it can add an additional 20% to the purchase price.Land and buildings tax, or stamp duty, is another cost to factor in when buying a commercial property. It is a progressive tax that increases with the price of the building.Lawyer fees, both for the buyer and the bank, are necessary expenses when purchasing a commercial building. Additionally, if the building costs over a certain amount, separate legal firms may be required.Accountant projections may be needed when seeking bank financing for a commercial property. These projections provide a professional assessment of the financial viability of the project.Ongoing costs to consider after purchasing a commercial building include utilities, insurance, business rates, and water charges. These costs can vary depending on the size and usage of the property.BEST MOMENTS
"One of the key ones that a lot of people actually forget about, and if they're working with the same advisors they do with residential, their advisors may not necessarily bring this up until the last minute, when they remember, it's actually the big one: VAT."
"Land and buildings tax could be less than RESI, might be slightly more depending on what the size is, but VAT does need to be included in that."
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/
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