Finding Motivation in Commercial Property Vendors: How to Spot the Right Sellers and Become Their Buyer of Choice
This article was first published in Property Investor News, October 2025
When I started in commercial property back in the early 1990s, the world looked very different. Commercial leases were 25 years long, with five-yearly upward-only rent reviews. It was, frankly, a landlord’s market. If you owned commercial property, you were in the driving seat. Tenants signed up and stuck around. Rent only ever went one way – up. And whether you bought an office, a shop, or a warehouse, you couldn’t really lose.
Fast forward 30 years, and that landscape has completely changed. Today’s commercial market is far more dynamic – and far less forgiving. Some investors are making fortunes, while others are being left with empty buildings and dwindling returns. The key difference? It’s no longer landlord-led. It’s occupier-led. Supply and demand – what tenants actually want – dictates the winners and losers.
And this is where the opportunity lies. For the clued-up investor, the shift opens doors to less traditional, more innovative models of commercial real estate. You don’t have to be restricted to the old office-retail-industrial categories, with the whole building let to one tenant. The market is wide open if you know where to look.
1) Managed Offices: Beyond the “WeWork Effect”
In the 1990s, office tenants were tied into decades-long leases. Now? Businesses want flexibility. Start-ups don’t know what size team they’ll have in six months, let alone six years. Even established companies don’t want to lock in overheads when the economy feels uncertain. Add in the drive for blue chips to move to Grade A, high spec offices and the rest of the office market is left behind.
Enter managed offices. Think of them as a halfway house between a serviced office and a traditional lease. Tenants get shorter, more flexible agreements, (sometimes) bundled services, and (always) ready-to-go space without the capital outlay. Landlords get higher yields because they’re effectively offering a premium ‘flexible’ product rather than just four walls.
Managed offices can also work as a partnership between the operator and the landlord. This can be challenging for some valuers to get their heads around but can also offer a profitable way of looking at office space in the current market.
Yes, WeWork grabbed the headlines with its meteoric rise and fall, but the managed / serviced office model is far bigger than one brand. Regional operators are thriving, and there’s demand across the UK for well-located, high-quality space that works for hybrid teams. If done correctly, managed offices have the potential to turn an underperforming office block into a high yielding investment.
2) Self-Storage: The “Needs-Based” Asset
If you’ve ever tried to clear out a house, move offices, or run a small business from your garage, you’ll know why self storage has exploded. It’s the ultimate “needs-based” sector: people will always need somewhere to put their stuff.
The UK still lags behind the US in terms of supply per head of population, which means there’s room for growth. Occupancy is resilient in downturns because demand isn’t discretionary—it’s driven by life events, logistics, and business requirements.
From an investor’s perspective, self-storage offers:
- Sticky customers: Once you’ve put your worldly goods in a unit, you’re reluctant to move them.
- Multiple streams of income – this is the ultimate ‘multi-let’ model
- Strong cash flow: Rent is often paid monthly upfront.
- Operational upside: Additional services – insurance, packing materials, van hire – add margin.
It’s not glamorous, but it’s profitable, and it’s becoming a much more institutionally acceptable asset class. The challenge is site selection and operational know-how, but with the right partner, this is a model worth considering.
3) Class E and the Rise of “Commercial CMO”
One of the most significant changes in recent years has been the introduction of Class E in the planning system in England. Instead of rigid categories—shops here, offices there, restaurants somewhere else – Class E lumps a whole range of commercial uses together.
In practice, this provides more flexibility for both landlords and tenants. A unit that was once restricted to retail can now be an office, a gym, a clinic, or even light industrial – all without the hassle of a full planning application.
This flexibility has opened the door to ‘Commercial in Multiple Occupation’ (CMO) – multi-let spaces where different users coexist under one roof. Think of it as co-working but across sectors: a health practitioner next to an accountant, next to a creative studio, next to a small retailer.
For investors, CMO means:
– Reduced void risk: Smaller units are easier to let.
– Diversified income streams: You’re not reliant on one tenant.
– Community value: Occupiers benefit from the ecosystem, making them stickier.
4) Roadside Retail: Convenience Is King
Traditional high street retail has taken a battering in the age of online shopping. But not all retail is created equal. One sub-sector that’s thriving is roadside retail.
Think drive-thrus, discount food outlets, trade counters, petrol stations with a shop, and EV charging hubs. These businesses thrive on accessibility and visibility rather than footfall. They’re driven by convenience—and convenience has never been more in demand.
Why investors love it:
– Strong covenants: National operators like McDonalds, Greggs, and Starbucks dominate this space.
– Longer leases: Roadside tenants still often commit to 10–15 years.
– Growth potential: As EV charging rolls out, land near main roads will become even more valuable.
For SME investors, the play is often in smaller roadside schemes or single-tenant assets. Yields can be very attractive compared with “prime” high street, and demand is robust. The ‘finished product’ is also highly sought after by larger investors due to the long lease terms.
5) Healthcare and Wellbeing Spaces
Another sector worth mentioning is healthcare. Private clinics, dental practices, physiotherapy centres, and wellbeing hubs are growing rapidly. The NHS backlog has driven people towards private provision, and there’s strong occupier demand for accessible, modern spaces.
Healthcare tenants tend to be stable – they invest heavily in fit-out and build long-term client bases. And because many are regulated professionals, their businesses are often resilient.
From a landlord’s point of view, healthcare uses also fit neatly into Class E, making conversions easier. An empty retail unit can quickly become a dental practice or wellness studio with the right tenant.
6) Logistics “Lite”
We all know the boom in logistics and big-box warehousing, but that’s not the only opportunity. Smaller urban logistics – so-called “last mile” units – are in high demand from delivery firms, e-commerce operators, and local distributors.
These don’t have to be massive sheds on motorway junctions. They can be modest industrial estates on the edge of town, perfect for SMEs fulfilling local orders.
Why it matters:
– E-commerce is here to stay.
– Urban space is limited, so supply is tight.
– Yields are strong, and rental growth has been robust in recent years.
For investors, smaller industrial units can be an accessible and profitable entry point.
7) Service-Based Businesses: Covid and Amazon-Proof
If the last few years have taught us anything, it’s that not all businesses are equal when it comes to resilience. During Covid, retail collapsed, but certain service-based businesses thrived – or at least bounced back quickly. Hairdressers, gyms, dentists, nurseries, vets, car repairs – none of these can be delivered by Amazon, and none can be done from home.
These occupiers need physical premises, and they often build loyal, recurring customer bases. For investors, this makes them attractive because:
– They’re essential services, so demand is resilient.
– They can’t be digitised or replaced online.
– Fit-out is sticky: once a dentist or gym invests in their space, they tend to stay put.
If you’re looking for income security, service-based occupiers should be high on your radar. They’re often the ones keeping secondary parades and suburban centres alive.
8) Experiential Retail: As a draw for footfall
While traditional retail has suffered under the weight of e-commerce, there’s a sub-sector that’s growing fast: experiential retail. Think leisure-led, interactive, and social. Escape rooms, climbing walls, trampoline parks, boutique cinemas, themed food halls, immersive exhibitions – these are experiences people actively seek out, precisely because they can’t get them on Amazon.
For investors, experiential retail offers:
– Sustained demand from younger demographics looking for activities, not just products.
– Anchor effect: experiential operators drive footfall that supports surrounding tenants.
– Repurposing potential: large obsolete retail boxes can be turned into leisure destinations (check out the rise of padel!).
It’s not passive “set and forget”—these businesses are operationally intensive, and you’ll want to partner with good operators. But they bring vitality to town centres and are increasingly supported by councils and landlords looking to repurpose tired retail stock.
Final Thoughts
Commercial property today is not the “buy and forget” game it once was. It requires creativity, awareness of trends, and an occupier-first mindset. But for those willing to adapt, the rewards are substantial.
The new models – of which the above are just a few – are not just fads. They’re structural shifts in how people and businesses use space. And they represent exciting opportunities for investors.
So, while the 25-year lease may be consigned to history, the future of commercial property is anything but bleak. In fact, it’s wide open—if you know where to look.
