Latest Business: Great opportunities
Rupert Burstow on new opportunities in commercial property amid the economic downturn
Rupert Burstow has been trading independently for five years but has worked in Brighton and Hove since the late ’80s. He began his career in property at Stiles Harold Williams and from there with other property companies, always with surveying business.
He now operates as an agent in the field of commercial property, covering everything from commercial to industrial. He started with acquisitions and development, when it was a profitable period to do so, advising and helping clients make their commercial investments work.
He has now diversified as a result of the banks lending less. ”Most of my clients can only raise 55 per cent and added to this there is very little on the market to be bought. You could say there is a stand-off position coupled with a gap in the market.”
So are times really that bad? ”On the contrary, they are not bad, simply different. We have quadrupled our leasehold work, an increase so great that we have brought in an extra man, Tom Graves.”
Does the current financial climate make the market more competitive? ”Well, all the agents in town are competing for the same work but we all try to get on and keep it friendly.
‘‘In the current market down to earth valuations and a realistic local agent looking after you are the key to success.
‘‘There is plenty of work at the lower to middle end of the market. Despite a downward trend we are trading at 50 to 60 per cent of the level we hit two years ago and are still turning over decent business.
”The good new is there is a lot of new business out there. People who have been made redundant are using capital to set up their own businesses in areas like retail and offices. Industrial is quiet but other areas are certainly showing new growth.
‘‘Where we were doing four deals a month in January we are doing four deals a week now. Some landlords are accepting deals on rent in these tougher times, taking a broader view and recognising that moderate rents sustain trade rather than having empty properties that lose money.
‘‘Smaller landlords are very grateful whereas bigger cash-rich landlords can ride it out and pick off properties that suffer.
‘‘Currently some banks are not forcing businesses that are in difficulty to sell but taking interest only payments, again riding things out.
‘‘We are buying properties for realistic clients who will be happy with a seven per cent return, which is a slow and steady return. We are seeing a lot more new clients, not just the usual suspects, and we deal with one-off investors as well as portfolio investors.
‘‘Right now if we take on a commercial property we hope to let it within three to six months and yes, we are also turning down work where we see no potential.”
Rupert Burstow, 71 Church Road, Hove, 01273 731111 www.rupertburstow.com
