In the dynamic world of commercial real estate, the adaptation of a property for alternative uses can unlock greater value.
2023 was widely expected to be a tough year for commercial property with media reports headlining the impact of rising interest rates, soaring inflation, changing work dynamics, and global uncertainties casting a shadow over the commercial property market, just as post covid vulnerability was starting to show signs of improvement.
“The commercial property market needs to reflect on these market conditions and be open to change and offer flexible solutions in the market” says Paul Fairlamb, Associate Director and Commercial Chartered Surveyor with youngsRPS.
In dealing with property portfolios we must always be open minded to different uses for property and finding the right time to sell a property and reinvest and the right time to hold on to an asset.
Some notable achievements during the year included acting jointly for the owners of the former Womble Bond Dickinson office. This was a large office building in an iconic position on Newcastle Quayside. The focal point for larger office occupiers has now shifted to other parts of the city but after a short marketing period a sale of the property was completed for a hotel use and Dakota Hotels have now secured planning consent for conversion of the property into a 115 bedroom boutique style hotel.
Other similar transactions involving a change of use have included a former vehicle repair garage in North Yorkshire which was let on behalf of the owner to Coop Funeralcare who are converting the property to a chapel of rest. A large former restaurant in Consett where we agreed a letting to a national operator who is to convert it to retail use and in Carlisle, we completed the sale of a town centre retail property for use as a gaming centre.
Paul continues “It is not particularly the case that demand for offices and shops is poor in all locations. We are still letting and selling space across all sectors. However it is more important than ever to be open to different uses for property and marketing property effectively to reach a wide audience of potential occupiers. In some cases various consents may be required for alternative uses but this process can be worthwhile in order to breathe new life into property”.
YoungsRPS remains a trusted partner for those seeking to navigate the complexities of the commercial property market, and these recent successes strengthen their reputation in the market.
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