Large house conversion to office lets ?
Discussion
Thinking of buying a 9-11 bed (7 bath) 19th C large villa and converting it into a small "rent an office" business centre, with a receptionist, etc.
Anyone seen this, or done similar ?
Trying to think thru what would be needed and what type of businesses might sign-up for such a facility.
Cheers!, BA
Anyone seen this, or done similar ?
Trying to think thru what would be needed and what type of businesses might sign-up for such a facility.
Cheers!, BA
Seen this done quite a lot and I think it works very well. There are many many types of business that would want such a service including accountants, start up tech businesses, IT people, lawyers, a large variety of people.
Just make sure they can all get the facilities they need. Kitchen area space if needed, toilets, receptionist may be required if you are going to manage the building, phone line requirements, wifi etc...
Just make sure they can all get the facilities they need. Kitchen area space if needed, toilets, receptionist may be required if you are going to manage the building, phone line requirements, wifi etc...
We did this a few years ago now. You either need to go cheap and basic, or upmarket each attracts a different class of tenant and rent varies quite a bit.
Don't underestimate the hassles and expenses you'll have. Silly stuff like changing lightbulbs, you either need someone on site capable of it, have the spare time yourself or be prepared to pay a maintenance company.
In our experience tenants treat the place like a hotel, you can provide a sink and dishwasher but still expect to find a pile of mugs next to the sink each day - this is where the receptionist comes in, but it makes the role more like a cleaner!
If you do the sums right it works well, personally as a one off I wouldn't entertain it unless you're basing your own business there, or it's large enough to warrant the expense of a couple of staff on site.
Don't underestimate the hassles and expenses you'll have. Silly stuff like changing lightbulbs, you either need someone on site capable of it, have the spare time yourself or be prepared to pay a maintenance company.
In our experience tenants treat the place like a hotel, you can provide a sink and dishwasher but still expect to find a pile of mugs next to the sink each day - this is where the receptionist comes in, but it makes the role more like a cleaner!
If you do the sums right it works well, personally as a one off I wouldn't entertain it unless you're basing your own business there, or it's large enough to warrant the expense of a couple of staff on site.
another thing to consider is that there is a lot of new build "distressed" office space out there. Big offices are relatively hard to fill at the minute, but divide them down into 500 to 1500 sq ft units in the same building and they rent bloody fast.
We did that on ours. Bought 4500 sq ft at £53 a sq ft . took 1500 for ourselves and broke the rest into 3 units, minimal cost and all leased out at £12 per sqft within a month.
We did that on ours. Bought 4500 sq ft at £53 a sq ft . took 1500 for ourselves and broke the rest into 3 units, minimal cost and all leased out at £12 per sqft within a month.
2nd visit, property is enormous, and lends well to dividing up into variety of room combinations.
Started to get soundings from local Agents about commercial demand for "moving out the bedroom" or professional services, etc....None, they reckon, very little demand :-(
Need to cross-check, but bit disappointing response from letting agents.
BA
Started to get soundings from local Agents about commercial demand for "moving out the bedroom" or professional services, etc....None, they reckon, very little demand :-(
Need to cross-check, but bit disappointing response from letting agents.
BA
big ant said:
2nd visit, property is enormous, and lends well to dividing up into variety of room combinations.
Started to get soundings from local Agents about commercial demand for "moving out the bedroom" or professional services, etc....None, they reckon, very little demand :-(
Need to cross-check, but bit disappointing response from letting agents.
BA
Are you speaking to commercial property agents?Started to get soundings from local Agents about commercial demand for "moving out the bedroom" or professional services, etc....None, they reckon, very little demand :-(
Need to cross-check, but bit disappointing response from letting agents.
BA
Commercial department of High Street agents. Idea is for 10-12 units, some shared services, parking, etc. Rooms can be configured very flexibly, as 7+ en-suite bathrooms, at least 6 receptions, etc....numerous store rooms, and lots of additional doors.
Want to talk to the Economic Regeneration officer at the local council, as they may have greater view on demand, etc.
Literally nothing in the town or neighbouring areas, although beyond the town, mainly rural villages.
Thanks.
Want to talk to the Economic Regeneration officer at the local council, as they may have greater view on demand, etc.
Literally nothing in the town or neighbouring areas, although beyond the town, mainly rural villages.
Thanks.
Looking at it from the other side.
I am a small one man band that has recently been looking at office space to help me take someone on and grow my business.
Been to look at a building that has recently been converted and sounds just as you describe. Old edwardian building and very swanky inside with all new fixtures and fittings, massive kitchen space, free to use meeting rooms, secure parking, even an ourdoor sitting area.
They are asking £250 a month for an office of around 15m2 which i think is a bargain.
There are 6 offices and only one of them is let (and it appears that they are moving out soon)
I really can't understand why they aren't more popular. Someone told me it is because they are competing against cheap council office space. My thought is that they are targeting 'work at home' businesses and most people would rather just save the money and work from home. Obviously a very difficult market though....
I am a small one man band that has recently been looking at office space to help me take someone on and grow my business.
Been to look at a building that has recently been converted and sounds just as you describe. Old edwardian building and very swanky inside with all new fixtures and fittings, massive kitchen space, free to use meeting rooms, secure parking, even an ourdoor sitting area.
They are asking £250 a month for an office of around 15m2 which i think is a bargain.
There are 6 offices and only one of them is let (and it appears that they are moving out soon)
I really can't understand why they aren't more popular. Someone told me it is because they are competing against cheap council office space. My thought is that they are targeting 'work at home' businesses and most people would rather just save the money and work from home. Obviously a very difficult market though....
Chonok - yes, this is a clear target market, and I wonder why 200-400 / month to enable growth and a move from bedroom, isn't sense. Will see.
Breakeven - well, I am looking to use 'cash' for the purchase and the works, so real issue for me, at what level of occupancy, does it make sense. To have a glorious asset prepared, but 1/2 empty would be more headaches than it's worth.
The Council, and the VCS (Voluntary Community Sector) are also potential targets, as they all have back office needs.
Not easy.
Breakeven - well, I am looking to use 'cash' for the purchase and the works, so real issue for me, at what level of occupancy, does it make sense. To have a glorious asset prepared, but 1/2 empty would be more headaches than it's worth.
The Council, and the VCS (Voluntary Community Sector) are also potential targets, as they all have back office needs.
Not easy.
chonok said:
Looking at it from the other side.
I am a small one man band that has recently been looking at office space to help me take someone on and grow my business.
Been to look at a building that has recently been converted and sounds just as you describe. Old edwardian building and very swanky inside with all new fixtures and fittings, massive kitchen space, free to use meeting rooms, secure parking, even an ourdoor sitting area.
They are asking £250 a month for an office of around 15m2 which i think is a bargain.
There are 6 offices and only one of them is let (and it appears that they are moving out soon)
I really can't understand why they aren't more popular. Someone told me it is because they are competing against cheap council office space. My thought is that they are targeting 'work at home' businesses and most people would rather just save the money and work from home. Obviously a very difficult market though....
Maybe because there will be 1,200 in council tax et al so it's actually 5k per year.I am a small one man band that has recently been looking at office space to help me take someone on and grow my business.
Been to look at a building that has recently been converted and sounds just as you describe. Old edwardian building and very swanky inside with all new fixtures and fittings, massive kitchen space, free to use meeting rooms, secure parking, even an ourdoor sitting area.
They are asking £250 a month for an office of around 15m2 which i think is a bargain.
There are 6 offices and only one of them is let (and it appears that they are moving out soon)
I really can't understand why they aren't more popular. Someone told me it is because they are competing against cheap council office space. My thought is that they are targeting 'work at home' businesses and most people would rather just save the money and work from home. Obviously a very difficult market though....
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