Selling Commercial Property at Online Auction: What Can You Sell in 2022?
Written by: Paul Thompson on 10th April 2022
Over the past 12 months, commercial property assets have maintained a strong track record. There has been high buyer demand at property auctions for commercial premises and land across all areas of the UK. We tend to see a higher rate of sale success at our commercial auctions as auction houses have historically been the go-to for the industry.
Investors and landlords continually show demand for property investments across all market sectors. Plus, individual buyers often prefer auctions when looking for suitable commercial premises. Alongside entrepreneurs looking to buy property for their start-up at auction. This creates a huge pool of buyers looking to buy commercial property or land at online auction.
There are many different types of commercial properties that sell well at auction, making it an ideal route for a fast and secure sale. If you are the owner of property that falls into one of the below categories, it's worth considering selling your premises with us at auction.
1. Mixed-Use Commercial Properties
Properties that have multiple uses, or several potential future uses, are ideal for sale by online auction houses. A mixed-use property typically consists of ground floor retail or commercial space with upper-floor residential accommodation. These types of properties are particularly appealing to investors interested in the longer-term rental yield. They also appeal to investors and owner-occupiers who see scope for development opportunity. E.G. extending the roof space or converting the commercial element into residential.
2. Commercial Investments
Everything from offices, industrial units, retail shops, and garage blocks are sold at property auction. Whether they are tenanted or vacant, we have a large database of investor clients actively looking for these types of commercial investments.
3. Hospitality Venues, Pubs & Hotels
The past couple of years have seen a strong demand for pub and hotel properties at our auctions. Once at the heart of their communities, pubs and hotels have had a hard time of late, with more and more closures over the years. In response to these widespread closures, we have seen an increase in former pubs and hotels being listed in our auctions.
But these empty properties present a great opportunity for investors. At auction you can buy empty unique commercial properties that are often substantially sized. And investors are often willing to pay above guide price for the luxury. Regeneration may allow the premises to remain as a functioning public house. Or alternatively, obtaining planning permission for change of use can open the property up to the masses. The potential of a development opportunity for either residential or commercial use is enticing to a range of buyers.
Because of these factors, hotels and pub tend to generate large amounts of interest from potential buyers. Online auction is one of the most rapid and effective ways to take on a new and useful identity within a community.
4. Ex-Local Authority Properties & Land
In the last couple of years, local councils and public sector clients have been under increased pressure to reduce costs. They've needed to minimise expenditure and improve efficiency in a tough economic climate.
As a result, many public bodies have given up the fight against austerity. And are instead liquidating public assets via auction sale to fund and maintain their services.
Alongside old public buildings, ex-local authority land is very popular real estate at auction. Land is prime for development opportunity, if the right permits are in place and special conditions are considered. Land is often sold much more successfully at auction than via private treaty. Our surveyors pride themselves on recommending transparent guide prices for commercial assets particularly.
Over 85 Council clients across the UK trust Pugh & Co to dispose of their surplus properties and land at auction. Our experience of acting on behalf of Council clients is comprehensive. We have successfully completed the disposal of assets in excess of £185m through approximately 2,100 instructions.
5. Unique Commercial Properties
There is always a selection of unique commercial entries into our auctions. These include former churches, toilet blocks and water towers. Alongside areas of land often owned by public bodies. These are usually sought-after properties in prime locations that need to be sold in a competitive bidding environment. The unique opportunity these types of properties offer often results in very competitive bidding and high sale prices. Achieving an outcome that couldn't be challenged by a private treaty sale.
Looking to Sell Commercial Property at Auction?
If you have a commercial property to sell at auction, get a FREE no-obligation auction appraisal from an experienced chartered surveyor at Pugh. Or to speak to one of our friendly team for initial advice if you're still unsure, call 0345 505 1200.
To find out more about the auction selling process, read our selling guide.
Alternatively, if you're interested in learning more about residential property auction, you can read our guide on what can be sold in our residential auction catalogue.
You can also see a list of our upcoming auction dates by visiting our auction diary.
Written by: Paul Thompson on 10th April 2022