Changing an office space into a venue/A3?

[BGC180]

Hello

My business partner and i are finding it hard to find A3 premises or even reasonable A1/2 that might be changed to A3 and we got to thinking whether or not it is possible to change a premises designed and used for offices into a venue/A3 space?

Our business would be a destination venue rather than one that relies on footfall and as a result it can be tucked away and not immediately obvious. So does anyone know of anyone who has achieved this or if it is feasible at all?

Thanks in advance.

 

[rach88]

It's definitely possible, I know of at least one first floor office which has been converted into a restaurant. You will of course need planning permission for the change of use which may not be easy to get. (The government have relaxed to rules to allow a change of use for up to 2 years without permission, but it you are investing in the premises I am sure you will want the certainty of having planning permission). If you find somewhere suitable you will want to enter into an agreement for lease subject to planning and will need to take on the cost of making the planning application, without knowing if it will be successful, which is a bit of a risk. The rent should be cheaper though!

 

[BGC180]

Hello Rach

Thank you for your response that is encouraging. We know it is a slightly more complicated transaction but could be feasible at least. I hadn't really considered that rent might be cheaper, that would be a bonus especially with the astronomically high price of retail space and in particular A3 space!

 

[#ServicedOffices]

There is a pizza place not so far from me which is above a motorbike shop. It doesn't have much covers so the lack of footfall isn't an issue and its typically always packed - you need to ring up to reserve to avoid disappointment. Some people really like the whole low key affair.

As for cost - the landlord is unlikely to agree an office rent then accept modifications etc. So be prepared for any landlord to reevaluate their agreed rent when having a different planning class.

May I ask what sort of venue will this be?

 

[rach88]

A landlord should be happy to accept an office rent which should be cheaper BUT you would have to

1) make the planning application at your own risk/cost (and make sure you have a formal Agreement for Lease (a legal document) in place prior to making the application which sets out the terms of your proposed lease on a subject to planning basis)

2) make the necessary modifications to the building at your own cost

3) agree to reinstate those modifiations at the end of the lease at your own cost, if requested, and

4) give the landlord ample security (a personal guarantee probably).

There's plenty of poor quality office space out there which has been sitting empty for some time and which landlords will be fairly desperate to let. A lot of it is being converted to flats under the new permitted development rules but that requires capital investment on the part of the landlord, and many offices aren't suitable for conversion anyway.

 

[BGC180]

There is a pizza place not so far from me which is above a motorbike shop. It doesn't have much covers so the lack of footfall isn't an issue and its typically always packed - you need to ring up to reserve to avoid disappointment. Some people really like the whole low key affair.

As for cost - the landlord is unlikely to agree an office rent then accept modifications etc. So be prepared for any landlord to reevaluate their agreed rent when having a different planning class.

May I ask what sort of venue will this be?

Thank you for this, very interesting. Of course you can. It is a Board Game Cafe in the style of Snakes and Lattes in Toronto or Draughts in London. So yeah another bloody cafe based business but i think we are seeing an emergence of strategy and party games as mainstream and people looking to alternatives to the pub, club or cinema, but that is for us to prove i suppose

 

[BGC180]

A landlord should be happy to accept an office rent which should be cheaper BUT you would have to

1) make the planning application at your own risk/cost (and make sure you have a formal Agreement for Lease (a legal document) in place prior to making the application which sets out the terms of your proposed lease on a subject to planning basis)

2) make the necessary modifications to the building at your own cost

3) agree to reinstate those modifiations at the end of the lease at your own cost, if requested, and

4) give the landlord ample security (a personal guarantee probably).

There's plenty of poor quality office space out there which has been sitting empty for some time and which landlords will be fairly desperate to let. A lot of it is being converted to flats under the new permitted development rules but that requires capital investment on the part of the landlord, and many offices aren't suitable for conversion anyway.

Excellent points, thank you very much. All worth considering when running the numbers and looking at premises. I wonder if one just knows when a venue is "right" or if it is a very logical and cold decision making process?

 

[rach88]

Thank you for this, very interesting. Of course you can. It is a Board Game Cafe in the style of Snakes and Lattes in Toronto or Draughts in London. So yeah another bloody cafe based business but i think we are seeing an emergence of strategy and party games as mainstream and people looking to alternatives to the pub, club or cinema, but that is for us to prove i suppose

Oh wow! My husband would love somewhere like this - he is obsessed with board games! Where are you opening?

 

[BGC180]

Oh wow! My husband would love somewhere like this - he is obsessed with board games! Where are you opening?

Bristol is the plan as it has plenty of students, young people and it is a little bit quirky! Not near you by any chance?

 

[rach88]

Ah, unfortunately not - we're near Southampton but if we find ourselves in Bristol we will look you up!

 

[Stuart Bailey]

first of all I would contact the local planning department and find out their policy on allowing change of use from A2 to A3.

If you find a site you can enter into what is called an agreement for lease. Basically you agree the terms of the lease at the outset and you agree to complete the lease once satisfactory planning permission is obtained. Its a bit long winded but will do the trick.

Office space is hard to let at the moment so you may have some willing Landlords.

best wishes stuart bailey