Thinking Beyond Rent: Could That Shopfront Be Your Smartest Move Yet?
- Micah
- Jul 9, 2025
- 4 min read
Updated: Aug 29, 2025
Let’s face it: the phrase “retail property investment” doesn’t exactly scream excitement. It sounds like something your uncle tried in the ’90s before he “pivoted” to selling artisanal chutney.
But here’s the twist — retail property has quietly had a glow-up. While everyone was busy chasing buy-to-lets and arguing about EPC ratings, the humble shopfront evolved. It’s no longer just a dusty unit with a flickering fluorescent light. It’s become dynamic, local, and — dare we say it — quite clever.
So before you walk past that empty unit on the high street for the thousandth time, maybe ask yourself: is this just someone else’s business… or is it your next best move?
Let’s unpack it. No jargon. No lectures. Just real talk about why retail might be the most underrated asset in your portfolio.
Retail Property: Not Just Bricks, But Bricks With a Pulse
Retail isn’t just about square footage and signage. It’s about people. Community. The smell of fresh bread at 7am and the sound of a barista who knows your name (and your oat milk preferences).
Think:
The bakery that fuels the school run.
The gym where half the postcode is trying to deadlift their way through a midlife crisis.
The bookshop that’s somehow still open — and thriving.
These aren’t just tenants. They’re local landmarks. And when they do well, so do you. More footfall = more stability = better returns. It’s not rocket science. It’s just good business.
Why Retail Might Be the Smartest Thing in Your Portfolio (That Isn’t a Spreadsheet)
Still sceptical? Fair. Retail’s had its wobbles and is going through lots of change. But here’s why it might be time to give it a second look:
1. Longer Leases, Fewer Headaches (and Fewer Roof Repairs)
Retail leases in the UK tend to run longer — five to ten years is fairly standard. That’s already a win if you like your income predictable and your tenant turnover low. But here’s where it gets even better: many of these leases are what’s known as FRI leases — Full Repairing and Insuring.
Translation? The tenant, not you, is responsible for the upkeep of the property and the insurance. Yes, really.
So when the roof leaks or the boiler throws a tantrum, it’s not your Saturday that gets ruined. It’s theirs. You get the rent, they get the repair bill. It’s the kind of arrangement that makes landlords quietly fist-pump behind their spreadsheets.
And because these leases often come with built-in rent reviews — typically linked to inflation or market rates — your income isn’t just stable, it’s designed to grow over time. No awkward renegotiations. No chasing tenants for pennies. Just a lease that does what it says on the tin.
In short: longer leases, fewer surprises, and a lot less time Googling “cost of commercial roof replacement.”
2. Location, Location… Regeneration
The rise of “15-minute neighbourhoods” means people want everything close by — groceries, gyms, and yes, that suspiciously expensive sourdough. Retail units in well-connected, regenerating areas are seeing a quiet resurgence.
Buy where the people are going, not where they’ve already left.
3. You Can Actually Add Value
Unlike a passive asset that just sits there hoping for appreciation, retail gives you options:
Refurbish the space
Improve the frontage
Attract better tenants
Change the use (retail to wellness, café to co-working)
Combine or split units
It’s like playing Monopoly, but with real money and fewer arguments.
Need expert commercial mortgage advice?
Financing: Not as Scary as It Sounds
Yes, commercial finance is a different beast. But it’s not unmanageable — especially if you go in with your eyes open.
Know Your Costs
Before you get excited about yields, make sure you’ve factored in:
Purchase price
Stamp duty
Legal and surveyor fees (think at least double what you'd pay for a residential buy-to-let)
Business rates
Insurance
Maintenance
Potential voids
Borrow Smart
Stress-test your numbers. Don’t assume interest rates will stay low just because they were last Tuesday. And don’t over-borrow.
Pick the Right Lender
Not all lenders “get” retail. Some still think it’s 2008. Work with those who understand the sector — or better yet, use a broker who can translate your vision into something a credit committee won’t laugh at.
Always Have an Exit
Markets change. So do your goals. Ask:
Can I sell this easily?
Could I change its use?
Would it work as part of a mixed-use scheme?The High Street Isn’t Dead. It’s Just Different.
Forget the doom-and-gloom headlines. Today’s retail isn’t about mega malls and chain stores. It’s about local, lean, and lifestyle-driven businesses.
Think:
Independent cafés
Food stores
Boutique fitness
Niche services
These are the businesses people actually use — and they’re breathing new life into the high street. As an investor, that means assets that are both financially sound and socially relevant.
That Shopfront Might Be Smarter Than You Think
So, could that empty unit be your smartest move yet?
Short answer: Yes.
Longer answer: Yes, if you approach it with strategy, creativity, and a decent calculator.
Retail offers:
Predictable, inflation-linked income
Tenant diversity
Real value-add potential
A chance to invest in people, not just property
It’s not about chasing trends. It’s about building something that lasts.
Need expert commercial mortgage advice?
