Long Live the Office!
- £250k Office Loan
- Part investment, part owner-occupied
- Short unexpired lease terms
- Quality borrower
Offices have been the subject of so much commentary in the media since our first lockdown and for some, the work-from-home revolution was the start of a terminal decline in the office market. However, we believe that the pre-pandemic workspace isn’t going away anytime soon.
At Ortus, we have undoubtedly benefited from the joys of no commute, jogging bottoms and flip flops but we are also very much enjoying the gradual return to the office over the past few weeks. Online video calls serve a purpose, but we think that there is still great value to having a physical space that allows colleagues to interact face to face, share ideas and get things done.
Our case study this week is an own door office scheme for which our borrower raised £250k to support other projects. The proposal suited bridging as the property is currently partially let to third parties with the remainder occupied by the borrower so it’s not quite owner-occupier and it’s not quite an investment. The borrower’s intention during the two-year term is to regear leases and build up third party income with a view to refinancing at the end of term.
What we found really interesting about this case was the positivity our valuer had for the property. Own door office, car parking, space, proximity to major road networks, suitability for satellite premises and avoiding the need to commute to the city centre, all positives for the proposal reflecting the needs of the modern workplace.
Perhaps the office market has changed. It hasn’t gone away though and the properties that are well placed to take advantage of the demands of the market will always thrive. Our team have extensive experience in the property industry. It sometimes takes that to see and understand the trends in the market.