A Guide to Buying Shops: What Matters in Commercial Property in 2026
Frontage width, terrace ratio, ceiling height and licensing — the eight criteria that decide your yield.
In commercial property, yield is decided not by square metres but by the quality of those square metres. Two 120 m² shops can return 6% and 11% respectively. Eight criteria explain the difference.
Frontage width is the only surface on which a tenant can show their brand to the street. Chain retailers usually reject anything under 5 m. Terrace ratio matters because a terrace is bought more cheaply per m² but generates as much turnover as enclosed space in hospitality use. Ceiling height above 4.00 m allows a mezzanine, which effectively increases licensed floor area.
Column spacing frees the internal layout; a column in front of the shopfront effectively halves it. Footfall depends on the position of the car park entrance, main lobby and bus stops. Infrastructure decides who can rent: without a flue, grease trap, three-phase electricity and gas, the unit is closed to restaurant tenants.
Finally, read the management plan before you buy — some schemes prohibit food use entirely — and think about your exit. Standard-layout units become liquid faster than unique ones.