Where have all the commercial property investors gone? Yields on quality commercial investment property in Bath have risen over the last two years from lows of 3.75 per cent to around six per cent, so why is no one buying?

Well, it's not strictly true that no one is buying.

The commercial property investment market in Bath is picking up, and commercial property has recently benefited from some good national press exposure.

Milsom Street recently won the title of best fashion street in Britain in the Google Street View awards and SouthGate has had high profile coverage since opening. We are however a long way from the days when people were fighting over commercial property in Bath.

Locally I believe that there are substantial amounts of capital currently locked away in poorly performing investments which could be used to buy investment/development opportunities at a time of low prices.

Perhaps the saying that it takes six months to realise that the time to buy was six months ago applies. Investing in any asset class is not without its risks and many investors are more cautious after the recent fall in property values.

Perhaps it is the thought of a fourth term of a Labour government, the thought of a slash and save policy by the Tories or the uncertainty that goes with a hung Parliament that is fostering a wait and see approach among Bath commercial property investors.

Perhaps many investors are battening down the hatches on their existing property portfolio. In both cases investors could be missing out on opportunities that currently exist. There are bargains in the Bath property market, and the condition of the property, location, use and covenant strength of the tenant remain the key factors to consider.

Milsom Street, Union Street and SouthGate are prime retail and have the lowest yields in Bath.

Local shopping areas such as Moorland Road, Chelsea Road and Larkhall offer more affordable investment options.

City centre investment opportunities currently exist due to the general oversupply of office space. That said, getting the right property in the right location with a good covenant strength is still no guarantee of making money.

It is not unusual for people with money to invest in commercial property when prices are sky-rocketing and to pile in to the market when yields are falling.

Some investors are smart enough, or fortunate enough, to exit the investment before the prices start to fall and make money from the property.

Without a comprehensive investment strategy, riding the market like this is nothing less than a gamble. The entry costs and exit costs associated with commercial property are high.

Making money today, more than ever, from investing in commercial property needs a carefully thought-out strategy. Whether or not now is the right time will depend on a number of factors such as your individual circumstances, the skills and knowledge that either you or your adviser can bring to the investment, and what your investment strategy for a particular property is. The key is identifying value, then devising a robust strategy to extract that value and ensuring that this decision to invest in commercial property fits with the profile of your overall investment portfolio.