Across the world, office space is a particularly ripe market at the moment.
While residential property prices have more or less returned to pre-crisis levels, offices are still being sold at prices 20 per cent below their 2007 peak.
Demand for office space has picked up as companies look to re-locate to bigger and better sites. However, a lack of major construction during the crisis years means available space is limited.
The financial benefits of this investment opportunity don’t just stop at with the investor. The office space being offered is rented to co-workers, a fast growing work space and office sharing concept.
Why to invest in offices
There a number of reasons to be positive about office space: it has the potential to deliver a competitive return with comparatively low volatility; it can provide a strong and stable income stream through rent; and the prospect of long-term capital growth remains strong as property prices continue to rise.
According to the IPD Annual Property Index for 2014/15, office space has yielded high returns, higher than both equities and bonds.
Looking forward, 2016 is likely to be another strong year for commercial property as an asset class.
However, 2016 is likely to be a peak year, as rising interest rates will put pressure on refinancing costs starting in 2017
Although office sharing is not a new concept, what is innovative with these new office spaces is that the tenant gets an all-in fixed fee, meaning no hidden extra charges each month. This means the tenant will get free services like coffee, photocopying, phone, and much more.
How to get involved
Private investors who want to dip their toes into the office space market can do through Katar Investments with projects in the UK , USA and Dubai at levels suitable for private individuals all the way up to corporate and fund investors.