A New Use for Old Spaces – The Rise of the Hybrid Investment
With high street changes, remote working, and tourism on the rise across Wales, many landlords and investors are rethinking how they utilise commercial properties. One increasingly popular strategy is to convert commercial space into short-term holiday lets or serviced accommodations.
In Barry and surrounding areas, this approach could turn underused shopfronts or office units into high-yielding assets — but is it worth the cost and effort?
Let’s break it down.
🧱 Why Are Investors Looking at This Now?
Several trends are driving the shift:
- Decline in traditional retail tenants (especially in smaller towns)
- Rise in staycations and domestic tourism post-COVID
- Greater flexibility in Class E planning permissions in England and Wales
- Airbnb and Booking.com are offering direct-to-guest income
For landlords with vacant units or mixed-use buildings, converting the space above (or even ground floors) into short-term rentals can significantly boost cash flow, offering a promising financial outlook.
💼 Case Example: Shop to Short Let in Barry
Imagine this:
- A former shop unit in central Barry, previously rented at £750/month (£9,000/year)
- After light refurbishment and furnishing, it earns £90/night on Airbnb, with a 60% occupancy rate
- That’s around £1,620/month gross income or £19,000+/year
Even after accounting for cleaning, management, and platform fees, you could double the yield compared to a long-term commercial lease.
📋 What You Need to Consider
Planning & Legal:
- You may need a change of use or planning permission, especially if converting the ground floor.
- Some areas have Article 4 Directions, which restrict short-term lets — check with the Vale of Glamorgan Council.
Compliance:
- Fire safety standards and access requirements are stricter than for standard BTLs.
- Insurance and business rates may apply instead of council tax.
Setup Costs:
- Expect £10,000–£25,000 for a basic fit-out (kitchen, bathroom, furniture, fire doors, etc.)
- Ongoing management is key – consider self-managing or using a local Airbnb co-host service.
💡 Is It Worth It?
✅ Pros:
- Higher income potential
- Flexible use of underperforming assets
- Adds value to your portfolio
- Tourism-friendly locations like Barry offer consistent demand
❌ Cons:
- More hands-on or higher management costs
- Seasonality and income fluctuations
- More regulation and overhead
For many landlords, it comes down to location, planning, and your appetite for involvement.
🛠️ How REMAX Estate Agents Can Help
We work with investors and commercial landlords looking to:
- Source underperforming commercial property
- Estimate conversion potential and ROI
- Coordinate planning and refurb advice
- Let and manage the property post-conversion
Whether you’re looking to repurpose a space you already own or explore new deals in Barry, we’ll help you spot the right opportunity.
📞 Ready to Explore a Conversion Project?
Speak to our team today for advice on sourcing, valuing, and converting commercial property into short-term lets — and start turning space into high-yielding assets.
