The last few years have transformed how businesses occupy property. With shifts in consumer behaviour and hybrid working, many landlords and occupiers are repurposing to stay competitive. A warehouse may be converted into a gym, or an office changed into a cafe. These alterations can unlock new revenue, but according to B P Collins’ award-winning commercial property team, they bring legal and regulatory challenges that must be managed carefully.
How common is it?
According to a report from Funding Circle there are signs that consumers are spending more and differently in 2025. There is a growing appetite for lifestyle and leisure experiences over day-to-day essential spend that is transforming the high streets and causing a notable shift in the commercial mix with food, leisure and health services replacing traditional retail.
Planning permission and permitted development rights
The first consideration is planning law. Under the Town and Country Planning (Use Classes) Order, many commercial uses now fall within the broad “Class E” category, covering shops, restaurants, offices, medical facilities and indoor sports.
This reform, introduced in 2020, allows far greater flexibility. In many cases, moving from one Class E use to another does not require planning permission. For example, changing a retail unit to a café can often be done without a formal application.
However, there are caveats. Local planning authorities can remove these rights in sensitive areas. If the new use increases noise, traffic or late-night activity, full planning consent may still be required. Always work with your commercial property lawyer to confirm with the local authority before proceeding.
Lease restrictions and landlord consent
Where property is leased, the permitted use clause is critical. Even if planning law allows flexibility, the lease may restrict the tenant to a single use, for instance, “retail only.” To change use, landlord consent may be needed.
Landlords may impose conditions, such as rent adjustments or contributions to service charges. In multi-let buildings, they may also be concerned about competing uses or the impact on other occupiers. Tenants should review lease terms early and negotiate variations where necessary.
Building regulations, health and safety and compliance
Converting between commercial uses can trigger additional compliance obligations. Building regulations cover fire safety, structural alterations, accessibility, and energy efficiency. A warehouse repurposed as a gym, for instance, may require improved ventilation, enhanced fire escape routes and upgraded sanitary facilities.
Other regulatory regimes apply depending on the new use. Food and beverage operations must comply with food hygiene regulations; healthcare or childcare uses may need special licences; leisure facilities must meet specific safety standards. Failure to comply can result in enforcement action or closure.
Future proofing for flexibility
Given how quickly markets evolve, future proofing makes good business sense. Strategies include:
- Negotiating wider user clauses in leases to cover multiple Class E uses.
- Designing layouts that can be reconfigured with minimal structural work.
- Installing services (power, ventilation, drainage) with surplus capacity.
- Considering acoustic insulation where late-night or noisy uses are possible.
- Tracking local planning policy to anticipate future restrictions.
These steps can reduce risk and increase long term value and marketability.
Changing from one commercial use to another can be complex. For landlords and tenants alike, early legal advice is invaluable. B P Collins’ commercial property team can clarify permissions, negotiate lease amendments, and ensure compliance, helping you unlock new opportunities with confidence. Please email enquiries@bpcollins.co.uk or call 01753 889995.
