Repurpose rather than rebuild
Relooking at retail
Repurpose rather than rebuild
Dart notes that there is still an oversupply of commercial properties with market forces determining the need for retrofitting office spaces to meet current day needs for more efficient, smaller work places and hybrid working models.
“ Hence there is a need for capital allocation for asset repurposing, converting underperforming office stock into alternative uses will ultimately remove obsolete inventory and tighten the market,” he says.
The consensus at High Street is that, in many instances, it is better to repurpose a building than build from scratch. Innovating so that existing buildings’ lives can be extended saves on costs, time and energy and contributes towards sustainability. Construction time can be reduced and challenges such as zoning and building restrictions are diminished.
Dart says savvy investors can quickly ascertain if the layout of a building is suitable for sub division into multiple residential units, for example, and if it is viable to convert dated plumbing, air conditioning and electrical infrastructure and even add green elements to meet modern day market demands.
Relooking at retail
At present, both shoppers and investors seem to favour convenience and neighbourhood retail centres anchored by grocery or pharmacy tenants for their stable footfall, essential service appeal, and resilience to economic volatility rather than large regional malls.
However, according to Dart, it doesn’ t stop there.
Many retail brands and landlords are now adopting hybrid models, using physical stores as both showrooms and distribution points, enhancing their ability to meet the demands of consumers shopping online. Some properties are being converted or upgraded to cater for other commercial tenants such as medical practitioners and professional services.
34 REI MAGAZINE JULY 2025