Across the UK, there are hundreds of underperforming commercial sites. From outdated retail units and half-let business parks to awkward plots with visibility issues, these assets often sit in a grey area: not quite distressed, but far from optimal. For developers, 2025 presents new challenges and new opportunities. With planning timelines extending and traditional tenants becoming more selective, developers need fresh strategies to extract value from existing assets and respond to changing demand.
Whether you are holding for long-term appreciation or seeking immediate cash flow, there are proven pathways to reposition or repurpose underutilised sites. This article outlines the root causes of underperformance, signals that suggest potential, and five strategies to unlock yield in today’s market.
You may also want to explore our companion article: ‘5 High-Yield Alternatives for Vacant Commercial Land‘ which offers tactical options for short-term and phased reuse.
Why Commercial Sites Underperform in 2025
Several structural shifts are affecting commercial property performance. Hybrid working patterns have reduced demand for traditional office footprints. Online shopping continues to pull footfall away from legacy retail locations. Meanwhile, environmental regulations and rising energy costs are rendering many outdated buildings uncompetitive.
In 2025, tenants are increasingly selective. They want flexible lease terms, modern ESG-compliant buildings, and strong locational benefits. If your site is failing to attract interest or maintain rent levels, it may be a sign that the current use is no longer fit for purpose.
How to Spot Untapped Potential
Underperformance is not always the end of the road. It can be the start of a smarter use strategy. Watch for these five signals that your site may hold hidden value:
- Strong road or commuter access, but low engagement
• Oversized yard or external space not monetised
• Redundant or outdated buildings with high structural quality
• Nearby residential growth or infrastructure improvements
• Interest from non-traditional occupiers like gyms, charities, or logistics firms
Each of these signals is an invitation to reappraise your site and test whether an alternative use could unlock stronger returns.
Five Proven Strategies to Unlock Value in 2025
1. Convert to Modular Self-Storage
Self-storage remains one of the highest-yielding commercial asset classes in the UK. Modular units are quick to deploy, require minimal planning in many areas, and suit redundant industrial, yard, or warehouse spaces. With rising demand from relocators, tradespeople, and SMEs, even modest-sized sites can deliver £90,000 to £150,000 in annual net income. Wigwam Storage Management offers a fully managed solution for landowners and developers looking to enter the sector without becoming operators themselves.
2. Interim Use as EV Charging Infrastructure
EV adoption is accelerating, and many local authorities are calling for private landowners to support the rollout of charging infrastructure. If your site has road frontage and access to the grid, you could partner with a charge point operator to install rapid chargers. This provides medium-term lease income with minimal capital exposure and enhances your asset’s ESG profile.
3. Mixed-Use Redevelopment
Many struggling retail and office schemes can be reimagined as mixed-use developments. Ground floor commercial space combined with upper-floor residential or co-working uses can increase density, diversify income, and attract public or planning support. This strategy is especially effective in growth corridors or suburban markets where demand for flexible space and housing coexists.
4. Activate Space with Pop-Ups or Markets
Short-term activation can turn a dead site into a community asset. Partner with local vendors, food trucks, artists, or experience-based retailers to create a low-cost, high-engagement pop-up environment. While income from pop-ups is modest, these uses increase visibility, attract planning goodwill, and demonstrate potential to future investors or tenants.
5. Repurpose via Strategic Operator Partnerships
If you lack the time, capital, or operational expertise to reposition a site yourself, consider partnering with a specialist operator. In sectors like storage, logistics, and co-working, operators will often lease or co-develop a site in exchange for management rights and revenue share. This model allows you to unlock asset value while mitigating delivery risk.
From Liability to Income
Holding an underperforming site in 2025 is not a sign of failure. It is a signal that the current model has run its course. The key is to act early, reassess use, and partner with the right specialists to unlock long-term value. The market is evolving rapidly, and adaptive reuse is being rewarded by tenants, investors, and local authorities alike.
If your site could benefit from a reappraisal, start with the low-risk, high-reward strategy of modular self-storage. Wigwam Storage Management offers a full-service model for landowners, developers, and agents seeking new income from idle or transitional assets.
Speak to Wigwam Storage Management
Nick Grant and the Wigwam team work across the UK to help developers turn underperforming plots into fully operational, income-producing storage businesses. From feasibility studies and planning support to branding, marketing, and full site management, we deliver the end-to-end solution so you do not have to.
Contact Nick today: [email protected]
