When it comes to investing in commercial property for sale in the UK, location is one of the most critical factors in determining the success and returns on your investment. Whether you’re considering investment properties for sale or looking to purchase business units for sale in a thriving region, understanding how location impacts your returns can help you make more informed decisions.
We’re going to explore the importance of location in commercial property investment, focusing on how Westpark in Wellington, Skypark in Exeter, and Roundswell in Barnstaple offer prime opportunities for investors. If you’re seeking industrial units in Devon or flexible workspaces in the South West that offer long-term growth potential, this guide will explain why location is key to maximising returns.
The Importance of Location in Commercial Property Investment
Accessibility and Transport Links
One of the most important aspects of any commercial property investment is how easily accessible it is for employees, clients, and suppliers. Properties that are well-connected to major roads, rail networks, and airports typically perform better in terms of tenant demand and rental income.
For example, Westpark in Wellington is located near the M5 motorway, providing excellent transport links to key cities like Bristol, Exeter, and beyond. This level of connectivity is crucial for businesses in sectors like logistics, distribution, and manufacturing, which rely on the efficient movement of goods.
Similarly, Skypark in Exeter is strategically located close to Exeter Airport, making it ideal for businesses with national and international connections. Its proximity to major road networks also ensures easy access for employees and suppliers alike.
Economic Strength of the Region
Another significant factor to consider is the economic health of the area where the commercial property is located. Regions with a strong local economy tend to attract a higher number of businesses, leading to a rise in demand for industrial units for sale and flexible workspaces. Areas like Exeter, Wellington, and Barnstaple have experienced steady economic growth, making them attractive for commercial real estate investment.
Exeter, for instance, has seen a significant influx of businesses due to its growing economy, backed by excellent infrastructure and a strong talent pool. Skypark, as one of the leading business parks in the area, has become a hub for companies in sectors like technology, manufacturing, and professional services.
Barnstaple, home to Roundswell Business Park, is another growing region in Devon, attracting businesses seeking affordable yet strategically located commercial buildings for sale. Barnstaple’s economic stability and thriving local market make it a prime location for businesses aiming to expand.
Local Demand for Commercial Property
High local demand for commercial property often translates into better investment returns. Business parks in regions with strong economic activity tend to attract tenants more quickly, reducing vacancy rates and enhancing rental yields. This makes properties in well-connected and economically robust areas more valuable over time.
Westpark in Wellington has seen increasing demand from logistics companies due to its proximity to major highways, while Skypark in Exeter is attracting tech and professional services firms that value its modern infrastructure and strategic location.
In contrast, investing in areas with lower demand can lead to longer vacancy periods and reduced returns, which is why understanding local market conditions is crucial for making the right investment decision.
Infrastructure and Amenities
Business parks that offer modern infrastructure and amenities are more likely to attract high-quality tenants. Companies today prioritise not just location but also the quality of the facilities available. Flexible workspaces that can be customised to a tenant’s specific needs are highly desirable, as are energy-efficient buildings that help businesses reduce operational costs.
Skypark in Exeter is a standout example, as it offers energy-efficient commercial buildings for sale with state-of-the-art infrastructure. This not only attracts tenants but also enhances the long-term value of the property, making it a sound investment option.
Westpark in Wellington offers facilities that cater to a variety of businesses, from small startups to larger enterprises, all within a well-maintained environment. These amenities make Westpark a great location for businesses looking for flexible leasing options from owners of light industrial units, increasing the chances of attracting long-term tenants.
Key Locations for Commercial Property Investment in Devon
1. Westpark, Wellington
Westpark is one of the premier business locations in Devon, offering industrial units for sale with excellent access to the M5 motorway. This location is particularly attractive for businesses involved in distribution, logistics, and manufacturing.
- Benefits: Close proximity to major transport links, flexible unit sizes, and modern facilities.
- Investment Potential: High demand from businesses needing quick access to major road networks ensures solid returns for investors.
If you’re looking to purchase a commercial building for sale, Westpark offers excellent potential for growth.
2. Skypark, Exeter
Skypark is located just outside Exeter and is one of the most technologically advanced business parks in the region. With its focus on sustainability and energy-efficient buildings, it attracts forward-thinking companies from a range of industries.
- Benefits: Excellent proximity to Exeter Airport, easy access to major roads, and high-tech infrastructure.
- Investment Potential: As a leading business hub in Devon, Skypark offers strong growth potential, particularly for investors focused on modern, sustainable commercial properties.
3. Roundswell, Barnstaple
Roundswell Business Park in Barnstaple has affordable commercial property for sale with excellent links to North Devon. It’s an attractive location for businesses seeking a balance between cost and connectivity.
- Benefits: Modern units, flexible purchasing options, and easy access to major road networks.
- Investment Potential: The growth of Barnstaple as a business hub ensures continued demand for units at Roundswell, providing investors with a steady stream of potential tenants.
How Location Affects Investment Returns
Rental Yields and Capital Growth
The location of a commercial property directly influences both rental yields and capital appreciation. Properties in high-demand areas with strong economic growth are more likely to see an increase in both rental income and property value over time. Business parks like Skypark, Westpark & Roundswell benefit from their strategic locations, attracting quality tenants and leading to stable rental yields.
On the other hand, properties in less favourable locations may experience slower growth in value and longer vacancy periods, reducing overall returns. This is why it’s essential to choose properties in economically stable and accessible areas.
Tenant Retention and Vacancy Rates
Location can significantly impact tenant retention and vacancy rates. Properties located in areas with good transport links and modern facilities tend to attract long-term tenants, reducing turnover and vacancy periods.
Businesses at Skypark in Exeter benefit from the park’s close proximity to the city and its airport, making it a desirable location for companies with national and international connections. Westpark in Wellington offers similar benefits for logistics-based companies, while Roundswell in Barnstaple caters to businesses seeking well-connected units in North Devon.
Choosing the Right Location for Your Investment
Investing in commercial property for sale is a significant financial decision, and the location of the property plays a critical role in determining its success. By selecting properties in strategic locations like Westpark in Wellington, Skypark in Exeter, and Roundswell in Barnstaple, investors can benefit from strong demand, excellent transport links, and modern infrastructure that drive long-term returns.If you’re interested in exploring investment properties for sale in Devon, contact Onyx Business Parks today to learn more about the available options in these prime locations.
