FRI
First Trust S&P REIT Index Fund
stock NYSE ETF

If you’re repairing the roof and structure that isn’t a FRI lease.
What’s the tenant covenant strength? You’re not just paying the rates when it is vacant, but full hold costs (utilities, insurance, cost to get back in marketable condition)
Just because rent is similar to rateable value doesn’t mean it’s low rent. RV is a pretty archaic approach and not representative of open market rents. Get advice on what the current ERV is.
What sector is it in?

thank you u/meepmeep13 u/Ok-Secret5233 u/jpewaqs for your insights. i need to give more context.
\- I made a cash offer for the commercial property and part of the money comes from remortgaging of an existing residential property and the other part is my savings. The remortgage offer (4.5% interest) is conditional in that i can use the money only for buying a property and cannot use if for other investments. So REITs, GIA are ruled out
\- the value of the commercial property is 220k £ and the current rent is slightly above the Rateable value. So i know the current tenant is not paying high rent but the basic RV
\- the property came to the market (freehold/heritable) as the current owners got it via inheritance and they dont want to be landlords (i need to trust the estate agent on this fact). EPC rating: B
\- i m buying the property through my limited company SPV
how I understand this is going to work:
the ownership of the property in the current tenant lease will be transferred to my company name and the tenant will start paying the rent to my limited company. The tenant lease is FRI and hence I do not need to worry about common issues like boiler breakdown etc. as a landlord, my responsibility lies in maintaining the roof and building structure in general. the tenant has a break option in 2030 and can leave with 6 months notice. If I can't find a tenant, then I need to pay the rent (RV \* poundage of 0.48) i.e. around 10k £ per year until new tenant comes. the same applies, if the current tenant goes bankrupt.
hope this clarifies few things about my investment decision. thanks

If you’re repairing the roof and structure that isn’t a FRI lease.
What’s the tenant covenant strength? You’re not just paying the rates when it is vacant, but full hold costs (utilities, insurance, cost to get back in marketable condition)
Just because rent is similar to rateable value doesn’t mean it’s low rent. RV is a pretty archaic approach and not representative of open market rents. Get advice on what the current ERV is.
What sector is it in?

thank you u/meepmeep13 u/Ok-Secret5233 u/jpewaqs for your insights. i need to give more context.
\- I made a cash offer for the commercial property and part of the money comes from remortgaging of an existing residential property and the other part is my savings. The remortgage offer (4.5% interest) is conditional in that i can use the money only for buying a property and cannot use if for other investments. So REITs, GIA are ruled out
\- the value of the commercial property is 220k £ and the current rent is slightly above the Rateable value. So i know the current tenant is not paying high rent but the basic RV
\- the property came to the market (freehold/heritable) as the current owners got it via inheritance and they dont want to be landlords (i need to trust the estate agent on this fact). EPC rating: B
\- i m buying the property through my limited company SPV
how I understand this is going to work:
the ownership of the property in the current tenant lease will be transferred to my company name and the tenant will start paying the rent to my limited company. The tenant lease is FRI and hence I do not need to worry about common issues like boiler breakdown etc. as a landlord, my responsibility lies in maintaining the roof and building structure in general. the tenant has a break option in 2030 and can leave with 6 months notice. If I can't find a tenant, then I need to pay the rent (RV \* poundage of 0.48) i.e. around 10k £ per year until new tenant comes. the same applies, if the current tenant goes bankrupt.
hope this clarifies few things about my investment decision. thanks