The first difference is that commercial property tends to cost many times the price of residential property. Although it is possible to buy small, individual shops and offices at prices that are comparable with those of residential properties, the cost of large, high-quality commercial properties, such as shopping centres, office blocks or large industrial premises, may run into hundreds of millions of pounds. As such, for most personal investors, collective investment schemes represent the only way to gain exposure to commercial property.
Secondly, the uniqueness of most commercial properties outside of high street shops or industrial warehouses makes it difficult for investors to get an accurate valuation without access to professional advice. By contrast, it's relatively easy for residential investors to compare the prices of houses or flats in a given area, based on comparable market activity. Professional, technical advice is crucial for anyone considering direct investment in commercial property.
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