Converting Commercial Buildings to Residential: How to Take Advantage of this Current Trend
Transforming a tired commercial building into prime residential property can not only boost its value but maximise the revenue it delivers as an investment. Are you up for the challenge?
An option open to investors who enjoy a development challenge, and the benefits it can reap, is to acquire a low-performing commercial building in a desirable urban residential area, convert it to residential and either sell or lease the accommodation.
Anyone who has watched the popular Channel 9 television series The Block will have seen several examples of successful conversions of commercial premises to residential, including a former cinema and an office block transformed into glamorous apartments. Both these projects produced excellent financial results for both the television network and the contestants.
Before considering such a project yourself there are several factors to consider. The first, naturally, is to find the right commercial property. Look for all the usual attributes, including a great location, access to desirable amenities including parking, public transport, schools, shopping and arterial roads.
Once you have identified a property that fits the bill, the next step is to investigate if there are any planning or zoning constraints which could affect how the building can be reused and redeveloped. Contact the local council and ensure you get clear answers to all your questions before you proceed with any purchase.
Office buildings, shops, warehouses and more have the potential to be converted into either single dwellings or contemporary apartments and often offer character and features such a high ceilings that set them apart from new builds and make them highly desirable.
Tackling such a project, however, requires a lot of research and it’s best to seek experienced, trusted advice. Our team at Silvio Property can assist you throughout, from selecting the right property, sourcing information on costs from comparable conversions, assisting with financials and budget and project management.
While converting commercial to residential can be exciting and highly rewarding, such projects are easily susceptible to mistakes and budget blowouts, so be sure you have an experienced team behind you to ensure your project’s ultimate success.