RETAILERS: LOOK TO THE FIRST FLOOR, NOT THE HEAVENS, FOR THAT REVENUE GODSEND.

MCBAINS COOPER

PROPERTY & CONSTRUCTION CONSULTANCY

PRESS RELEASE

May 12, 2011.

RETAILERS: LOOK TO THE FIRST FLOOR, NOT THE HEAVENS, FOR THAT REVENUE GODSEND.

The hardest hit sector of retail - high streets in secondary and satellite towns and cities – are sitting on, or under, a potential revenue windfall.

McBains Cooper, the property and construction consultancy, says independent retailers and owners of small chains might be looking to the heavens for revenue generation inspiration, but they actually need look nothing like so far.

“Stand in any satellite town shopping high street, look up to the first floor and above, and there are the tell-tales of opportunity: dusty windows, half-closed net curtains - empty rooms,” said Allan Davies.

“Then walk to the closest residential estate agency, and they’ll tell you they’re screaming for reasonably-priced town centre flats and apartments to satisfy a fast-growing demand.

“The answer: convert that empty above-shop space to flats or apartments. There are strong markets for flats ranging from corporate crashpads to people who love living in the heart of things, and conversion costs are nothing like as much as newbuild.

“The average three-storey building in a shopping high street will accommodate the existing retail space on the ground floor, and four flats above, which would typically generate a total rental revenue of £24,000 per annum, all managed by a residential lettings or management company.

“And we’re actually speaking from experience: one of our clients specialises in satellite town high street retail – and our feasibility study says many of their shops have empty space on upper floors ripe for residential conversion, whether from financial, practical or planning perspectives.

“I counted around 30 shops with empty first and second floors in one high street, and, judging by the size, each could accommodate at least four flats: in one high street, even just 40 flats at £24,000 a year would generate just short of £1 million a year – and then there’s the bonus of increased disposable income literally on top of the shops too.

“The key, though, is establishing feasibility based on local market conditions, weighed up with the cost of conversion. Some towns have a high demand for regular residential accommodation, others might be home to big and established businesses or organisations nearby whose staff need weekday crashpads, such as Media City in Greater Manchester and the BBC media centre in Cardiff.”

Ends

Further information:

Iain Macauley

07788 978800 im@pressrelations.co.uk

www.mcbainscooper.com

Notes.

McBains Cooper

McBains Cooper is an inter-discipline consultancy, specialising in property, infrastructure and construction, offering a wide range of consulting and design services including architectural, aesthetic or technical design, problem solving, budget management, facilities management, health and safety, sustainability consultancy and on-the-ground civil engineering. Driving and supporting projects ranging from minor works to major contracts worth more than £100 million, McBains Cooper operates across a variety of sectors throughout the UK, Europe and Latin America. McBains Cooper is committed to environmental, social and economic sustainable development and their integrated approach means they deliver effective, award-winning solutions to their clients. The Group employs 150 people. McBains Cooper has regional headquarters in London (head office), Birmingham, Glasgow, Leeds, Manchester, Oxford, Windsor, Athens, Lima (Peru), Miami and Mexico, with associate offices in Belfast and Dublin. www.mcbainscooper.com