Need: Property in an Urban Area
I'm looking to buy an industrial, retail, or creative office property in an urban area in the UK, however, I have found online resources to be very limited. Any help would be greatly appreciated.
[{"id": "d9fmuk6", "text": "This is not nearly enough information. Are you looking for something in downtown London or a secondary city. What price range? Stabilized or value add? What product type.\n\nIf you don't know the answers to these initial questions, I'd recommend setting up a meeting with a good size brokerage that handles a variety of product types and they can talk you through the pluses and minuses of each investment type.", "replies": [{"id": "d9fs22n", "text": "Thank you for your response.  I was vague in purpose, as I am looking for some guidance and the criteria is flexible.\n\nWhat I can tell you is that I like neighborhoods like Brooklyn and Bushwick in NY, Wynwood in Miami, Silver Lake in LA or Mission District in SF.  What is the equivalent in the UK?\n\nThere is no price range.  If there are some some stabilized properties with cap rates above 8%, that would be ideal.  If there are not, I'd  like to explore value add properties in up and coming neighborhoods equivalent to the ones previously mentioned. Product type would be: Industrial, Retail, or creative office.\n\nCan you recommend some resources or Brokerage firms I can talk to?", "replies": [{"id": "d9g0qzp", "text": "Having a Cap Rate in mind is a good start. The cap rate is generally  a reflection of the risk the investor is willing to take. At that cap rate, you are probably not going to have credit/corporate tenants, but in turn the potential rate of return is also higher.\n\nThe challenge is that you are describing neighborhoods that are in great demand and therefore the Cap Rate is compressed. For example, in Brooklyn, Cap Rates tend to be in the mid-5's, not 8 plus. Of course you'd love to buy property in Brooklyn at an 8 cap, but you better get in line, because so would everyone else.\n\nYou are generally choosing between the potential upside (and increased risk) of buying in a rougher \"up and coming\" neighborhood, vs. buying in an established neighborhood that is already hot.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}]