Mixed use development opportunities

How things change. A decade or so property investors were buying mixed use developments with the primary rent generation coming from the commercial use such as a ground floor retail unit.  The space above these shops offered potential for residential conversion if a separate access could be found.

Now with the downturn in the economy and the problems on the high street many retail units remain unletabble and demand for commercial space remains low.  Looking at a mixed use development it is the residential use which become the key and guaranteed rental generator.  Residential landlords, just as commercial focused landlords did before may see opportunity in mixed use developments where little or no value is attributed to the commercial element.  Patience is the key if you believe that the high street will recover.  If it doesn't and there are many reasons to suggest that the high street thanks largely to the Internet may never return to where it was prior to the 'fall out'.  Optimists may contend that it will re-invent itself and landlords of mixed use property may gain from it's reincarnation.

Have a look at the forthcoming Allsop auction for some opportunities.

One that I've picked up is a mixed use development in Weston Super Mere:

Comprising Nine x Studio Flats and One x Two Bedroom Flat
 

•   Restaurant subject to a Commercial Lease

•   Six Flats subject to Assured Shorthold Tenancies

•   Four Flats Vacant

•   Total Current Rent Reserved

£39,622 per annum (equivalent) With Four Flats Vacant

A bargain at the current guide price of £225-275k?  Possibly if you believe the restaurant will stay let and not go under.

For more details have a look at the Allsop auction website

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