Property yields within the motor trade industry have reached the pre-recession heights of 2007, new figures have revealed.
According to the chartered surveyors Hoddell Stotesbury Morgan (HSM), a yield on a prime car dealership would be in the region of 4.75 per cent. This high figure is expected to stay the same if not increase over the coming months.
However, it remains the responsibility of the car dealerships, garages and mechanics to make sure everything on the premises they are leasing is covered by their motor trade insurance policy. As more and more companies demand premium sites with modern fittings and larger showrooms, it is important to make sure this is reflected in a comprehensive motor trade insurance policy that covers both the vehicles and the other goods within the property.
HSM has advised on more than £275 million of motor trade investments in its history. It said that the manufacturing companies account for much of the money changing hands, but modern dealerships are also returning particularly high yields.
A report by the chartered surveyors says that the high amount of rental income being received in this industry is a sign of the returning prosperity of the market, something that is expected to continue in coming months and years. As companies require more parking space, larger garages or bigger showrooms, the demand for premium property is increasing which will drive the yield on such sites upwards.
HSM added that as purchasing a car becomes more of an “experience”, rather than a simple transaction, a modern look and feel to motor trade companies will become increasingly important.