Industrial units are sometimes worth more as offices, especially for a business that wants space for staff alongside a workshop or warehouse. Whether the conversion makes sense depends on the planning position, the building and the local market.
Do you need planning permission?
Since September 2020, offices and light industrial uses have both been in Use Class E. Changing from one use to another within the same class is generally not development, so converting a light industrial unit to offices does not usually need planning permission for the change of use.
General industrial (B2) and storage and distribution (B8) are separate classes. Changing a B2 or B8 unit to offices usually needs a planning application.
Before relying on either, check:
- the unit’s lawful use, and whether a past permission has a condition restricting it;
- whether the council has an Article 4 direction affecting the area;
- the lease or title, which may limit the use regardless of planning;
- whether outside changes, such as new windows or doors, need their own permission.
Where there is doubt, a Lawful Development Certificate from the council gives certainty.
What the building work involves
- Light and windows. Industrial units are often deep with few windows. Offices need daylight.
- Heating, cooling and insulation. Usually the largest cost, and it decides the energy rating.
- Floors and mezzanines. Adding a first floor can double the usable space, but needs structure, stairs and fire escape.
- Toilets, kitchens and access. More people means more facilities, and offices need step-free access.
- Building regulations. The works will need approval, including fire safety.
A commercial building generally cannot be let with an EPC below E, so the energy rating should be part of the design from the start.
Is it worth doing?
Compare the cost of the works with the difference in rent or value, and check local demand for both uses. In many areas good industrial space is in stronger demand than offices, so a conversion can reduce value as easily as add it. The answer depends on the location, the size of the unit and who would take it.
In Kent, a buyer of three industrial units is weighing up converting one to offices against selling on or letting in the existing use. Read the case study.