£1M Profit? Here’s the Real Process Behind Commercial Property Conversions
People love the idea of turning an old commercial building into a million-pound profit.
And TikTok loves to sell you that dream, fast edits, walk-throughs, and million-pound captions.
“We bought this office and made a million!”
But here’s the truth no one wants to talk about:
Commercial conversions are not beginner deals.
They’re complex, cash-hungry, and full of ways to get it wrong.
I should know — we’re about to break ground on a commercial conversion project that’s been months in the making.
And I’m going to walk you through exactly how we got here.
No fairy dust. No filters. Just the 7 real steps it takes to get from idea to site.
Step 1 – The Appraisal: Where the Money Is Actually Made
If you get this step wrong, forget profit, you’ll buy a liability with bricks.
This is where you structure the deal for:
Downside protection (what if it doesn’t go to plan?)
Upside potential (what's the revaluation after works?)
Multiple exit strategies (sell, refinance, rent, or split title)
It’s not “I think this will go up in value after a paint job.”
It’s: Can this site generate profit, even in a tougher market?
This deal worked because we were disciplined at the appraisal stage. We underwrote conservatively, assumed planning delays, and still made the numbers stack.
Step 2 – The Negotiation: Patience Beats Desperation
Forget the guru advice to "always offer 30% under asking" — that’s how you get your emails ignored.
I didn’t even offer at first.
I watched from the sidelines as two other buyers pulled out.
Then I made my move.
We secured the property with nearly £100,000 off the original price.
Great deals often come to those who wait, not those who rush.
Step 3 – The Feasibility Study: Not Just Boxes on a Plan
A proper feasibility study isn’t just about cramming in the most units. It’s about optimising for:
PPSQFT (price per square foot)
Density (what planning allows vs what sells)
Spec and layout (who’s your end user?)
On this site, we’re going boutique, high-end residential.
Higher rents. Better valuations.
And no shared kitchens in sight.
Step 4 – Planning: Brace for Delays
Yes, this building qualified for Permitted Development (PD). But we wanted more.
We applied for full planning permission to extend the building and extract more value.
It should’ve taken 8 weeks.
It took 9 months.
No cashflow. No mercy.
That’s fine for us, we bought in cash.
But if you’re sitting on a bridging loan at 12%, that delay could wipe out your profit.
Lesson? Always build in time and finance contingencies.
Step 5 – Value Engineering: Profit Is in the Pivot
We originally planned a two-storey extension.
Looked great on paper.
Then the tenders came in: £500,000+ for the additional floor.
The cost per square foot didn’t stack.
So we pivoted — removed the second storey and kept a single-storey design.
Result? Six-figure saving.
You don’t win by being stubborn. You win by being agile.
Step 6 – Building Regs: Sketches Don’t Build Buildings
Contractors can't price accurately off estate-agent drawings or napkin sketches.
We commissioned full Building Regs drawings, detailed spec packs, and tender documents.
Here’s a figure most people don’t want to hear:
£80K–£100K is standard for refurbing a decent commercial-to-resi conversion.
Stop trying to do it for £35K and a bag of optimism.
This isn’t a paint-and-plaster flip. You’re bringing old buildings up to modern standards, fire safety, insulation, ventilation, acoustic regs. And that costs real money.
Step 7 – The Contract: No WhatsApps, No Surprises
No builder should ever start on site without a contract in place.
Not a DM.
Not a handshake.
A real, written, legally binding JCT contract.
We got three quotes, cross-checked line items, and locked it all down.
That’s how you avoid surprises, delays, and arguments mid-project.
If your builder is quoting “all-in” with no paperwork? That’s not a quote, that’s a future lawsuit.
Final Thoughts: The £1M Profit Doesn’t Come Easy
People online want to make it look easy.
It’s not.
This kind of deal is capital-intensive, time-consuming, and full of moving parts.
But if you know what you’re doing, it’s where real equity is built.
And if you want to learn how to do it the right way, without TikTok hype or accidental risks, I break it all down in my Property Unicorn Masterclass.
Want to Learn the Full Commercial Conversion Model?
I’ve laid out the exact 7-step process I use in my free book, “Property Unicorn.”
You’ll learn:
How to structure profitable deals
How to de-risk your developments
How to build long-term equity, not just short-term hype
👉 Grab a free copy here (just cover postage)
👉 Or watch the full breakdown in the masterclass
No shortcuts. No fluff. Just strategy that works.
— Rob