Shop for storage - problems?

paulears

Free Member
Jan 7, 2015
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Suffolk - UK
I'm currently using storage space at premises I'm probably going to sell in a month or two when things get better - the capital will replace my pension pot that I've been living on due to no business.

All I really need is somewhere waterproof and dry, on one level, with electricity, so containers are out, and Big Yellow type locations are out because I'd like to be able to do prep and repair work on the kit between hires. A small unit locally costs around £450 a month upwards. However, our town is losing shops quickly and our old High Street has empty shops galore, and rents from £250 a month upwards. Some already have security shutters or grills, making these attractive.

I'm aware that use is linked to planning permission, but how rigidly is this applied. I buy stock, and often sell it too. It's hired out though for most of the time. I would have zero customers as a shop, but I've noticed a couple of other premises where they appear to sell things, but are never open, so my guess is they are doing the same thing. For £250 I get sufficient floor space, electricity and a toilet. It's local and convenient. I don't make much noise or have large amounts going in or out. For two months a year there would be no activity at all.

Price wise this seems a real solution. Business rates for a new shop would also seem to be fine.

Are there some drawbacks to doing this I've missed? To be honest, with a shop, I might even be able to sell the odd thing anyway? A bit like a shop in a nearby town who seem to sell computer servers, but who would walk into a shop to sell one of these? I suspect it's the same thing.

I'd be happy putting the business name on the front - and a few bits of industrial type kit in the window - the sort of thing not attractive to thieves but interesting to look at. Security arrangements for some already look pretty good as one shop used to be a jewellers and is protected like one. There's even a remote possibility the shop could actually generate a few hires, if I buy a few bits of less professional kit.

What have I missed that makes people spend double on storage?
 
No I must admit that hadn't occurred to me. My wife has just said "Why don't you buy more and sell some?" I must admit to selling quite a bit a few years back but gradually drifting away from retail, via the net - but I could diversify a bit and really sell via a shop? There are plenty of users of this kind of kit in the area, and while being mostly semi-pros and business clients maybe a shop could generate some additional income. We have a specialist guitar shop locally who does really well with clients coming in from a large distance away? Need to give this one some more thought, I think?
 
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If a shop is cheaper than a 'storage unit' and you can retail as well (if you wanted) that seems the way to go as long as:

1. The lease terms suit you and are not a noose around your neck.

2. The current use, meets your requirements.

3. You have taken account of all potential expenses.

4. Your circumstances don't change during the course of the lease. (Unless you can get rid of it easily).
 
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Three things spring to mind.

Shops have windows. Windows are expensive to replace whan they are broken. This happens.

The insurance may be higher.

Some "by the rule" officer at the council may say that your use of the property is not A3 (retail) and require a change of use. The landlord or the lease may prohibit this, and indeed the council may reject such an aopplication. You would thenm be tied into a lease for a property you cannot use.
 
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The windows thing on one property is ugly and very secure. Another is better in terms of layout, but apart from being bigger and more expensive, has large windows and is not in the best area. I know nothing about retail premises insurance - this could be a problem with no idea of premiums.
 
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A cleaning company near to me does just this - I couldn't quite work out why they had taken on a high street shop front to offer domestic cleaning. Turns out that they use the front of the shop as a very small office for 2 people, then the back of the shop is all sectioned off for storage of cleaning equipment and chemicals, as well as a wash up area disenfecting everything after jobs etc.

They put contravision over the windows so nobody can see in, but otherwise the door is open for customers, and they do get the odd person popping in to ask for their services so anything is a bonus. Mainly it's cheaper for them than an industrial unit and more convenient in location.
 
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Thanks - I didn't really want to get into retail, but I could put together some kits for parties, family discos perhaps even weddings? The stuff we do is mainly theatre based, but we've plenty of useful stuff that could generate income? Interesting.
 
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May I extend this a bit - I've found a decent sized office space. It's under an insurance brokers, but due to the sloping site, the office has walk in level access from the rear. Plenty of space for the kit, and in decent nick, but the one thing that concerns me is the toilet is a shared facility between the two tenants. How is this normally dealt with in terms of cleaning and use? Are there any issues with this kind of thing? As I doubt I'll be there that much, for me it's not really a problem?

Anything I need to investigate?
 
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May I extend this a bit - I've found a decent sized office space. It's under an insurance brokers, but due to the sloping site, the office has walk in level access from the rear. Plenty of space for the kit, and in decent nick, but the one thing that concerns me is the toilet is a shared facility between the two tenants. How is this normally dealt with in terms of cleaning and use? Are there any issues with this kind of thing? As I doubt I'll be there that much, for me it's not really a problem?

Anything I need to investigate?

Depends how clean and considerate the other tenants are? Replacing loo roll and keeping the area clean ought to be common sense but, of course, that's the luck of the draw.

I am in a building with 3 offices and we have two toilets. Luckily, for me, the other main users are 3 ladies so they use one and I use the other. Can't say there have been any problems as such but, with the benefit of hindsight, it's a situation I would rather avoid if I move somewhere else.
 
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...the one thing that concerns me is the toilet is a shared facility between the two tenants. How is this normally dealt with in terms of cleaning and use? Are there any issues with this kind of thing? As I doubt I'll be there that much, for me it's not really a problem?

Anything I need to investigate?

Check which way the place the toilet paper- it tells you a lot about a person.
 
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Will the 'office space' allow the usage you require?

Is this a sub-lease from the existing shared tenant? If so, ask them for their proposals to keep the toilet 'managed'. If not ask the landlord for their proposals. Will it also be used by their clients/visitors?

Keep a spare loo roll in your office and avoid using unless absolutely necessary.
 
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Not certain till after the bank holiday just have the basic details at the moment till I can go and see it. Some of the equipment I’d want to use there might be tricky on the access which has a right angle bend that looks a bit tight but it’s big enough to do some video work there as plenty of height. Storage and some useful work space makes it a useful space at price is manageable. Also the other business is 9-5 meaning I could make noise there in the evenings. Not suitable for audio recording without spending lots as there’s a railway line at the rear.
 
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Paul, when we started we contacted the local planning office, who had a list on landlords who rented out work places, one of the landlords had a old place unused for years we could hire on a monthly licence and very low rent. there were also local council properties for starter units that were in secure places dry and power but in rundown area's (Harbour area of Yarmouth)

Think you are in Lowestoft , so may well be some old buildings around harbour area

Many of these types of buildings are never advertised so you need to phone the landlords

Try Great Yarmouth Warehousing Ltd 01493 852411 they have properties all around Ipswitch to Yarmouth, dont mention me as he was my landlord and we owed him when we went bust, but a good company to work with
 
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Chris - thanks for this, an option I'd never thought about I have to contact the council about business rates anyway in the week - so that's very useful stuff. There is a huge unit near the Monument for modest rent, but it's very industrial and probably a little unsafe. Yarmouth isn't out of the question, distance wise, because I'm in North Lowestoft, and going South from here takes longer!
 
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In that case Paul , I thing Steve at above may well be worth the call, I know he has small unit's in both Gorleston and Yarmouth, the first one we had was in Battery road not a nice area a old fish building(no smell) looked bad but ok inside and no problems about security, his next place we had was a 3000 ft building on south denes again backing onto a small road with lots of one man garages but never any trouble
 
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All gone well - the office and workshop turns out to be bigger than I thought. Met the other tenant while being shown around - he heard people come down the access stairs and came down to check - which I quite liked. He runs the insurance company and has been there 26 years. Tells me the landlord is really elderly and genuine - just doesn't want the building empty. Council comforted the 100% rate relief, so I'm going forward with it. There was a downside, but it's actually positive for me. The electricity supply and all the mobs for the whole building are in my area, so part of the deal is the insurance company have a key for access. I'll probably use Eric for my insurance so him having a key isn't a snag for me, and when I'm away - which is frequently in normal times, I know the place is safe. Looks like it's going to work fine. Landlord doesn't even want a big deposit. The agent, of course has a non-refundable fee to pay, but I can live with that.
 
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