Commercial Fit-Outs in High-Risk Buildings: Critical Decision-Making for Investors
- Eleanor Whitcombe
- Jan 13
- 4 min read
For many investors planning a new restaurant or commercial venture in the UK, the process starts with finding the right location. However, leasing a commercial space in the UK is rarely just about concept, design, or budget. What ultimately determines success is how well the chosen property aligns with UK regulations, whether the building is classified as a High-Risk Building (HRB), and how this classification impacts the project from day one.
When these factors are not properly assessed early on, even the most promising locations can turn into serious delays, unexpected costs, and long-term operational risks.
What Is a High-Risk Building — and Why It Matters to Investors
In the UK, a building is classified as a High-Risk Building if it is 18 metres or higher, or seven storeys or more, and contains residential use. Many restaurant and high-street retail units fall into this category, particularly where commercial spaces occupy the lower floors and residential apartments sit above.
A common assumption we hear from investors is:“We’re only fitting out a restaurant — why should the building’s HRB status affect us?”
In reality, HRB status affects the entire building. Fire strategy, means of escape, structural integrity, and MEP systems (Mechanical, Electrical, Plumbing) are all subject to significantly higher scrutiny by the Building Safety Regulator. As a result, these projects follow a very different path from standard commercial fit-outs.
Why HRB and Non-HRB Projects Follow Completely Different Processes
In non-HRB commercial buildings, Building Control procedures are generally more flexible and predictable. In HRB environments, however:
Fire strategy is fixed early in the design process
Structure, fire strategy, and MEP systems become locked-in
Late design changes trigger complex approval processes
The common assumption of “we’ll resolve it on site” rarely applies
For restaurant projects in particular, MEP coordination is often the biggest risk. Ventilation, smoke extraction, grease duct routing, and fire integration must align precisely with the existing building infrastructure. If they don’t, projects can stall for months or require costly redesigns.
A Hidden Risk for International Investors: Choosing the Wrong Local Partner
The UK continues to attract investors from Turkey, Russia, France, Italy, Australia, Saudi Arabia, Qatar, the UAE, China, and beyond — particularly in hospitality and high-street retail. London, in particular, sees constant interest from large international groups entering the market.
However, investors unfamiliar with UK regulations often face a critical challenge:not every local firm fully understands — or openly communicates — the regulatory realities of the UK construction system.
In a competitive market, many firms focus on securing the job by presenting optimistic scenarios at the outset. Design concepts look ambitious, timelines feel achievable, and risks are downplayed. The reality often emerges later, once regulatory reviews begin.
At that point, the conflict becomes clear:when design ambition clashes with UK regulations, it is the investor who pays the price.
Balancing Design Ambition with Contractor Responsibility
At Kapeti, design and construction are never treated as separate worlds. We approach every project with a designer’s eye for quality and aesthetics, while simultaneously acting as a fully accountable UK contractor that means we can act as both principal contractor & principal designer in same project
This means that every design decision is continuously tested against:
CDM Regulations
Fire strategy requirements
Building Control compliance
Health & Safety obligations
Landlord and managing agent specifications
In the UK, good design cannot exist independently from regulation. A successful project is one where aesthetic ambition and regulatory compliance are aligned from the start.
Licence for Alterations: Where Most Investors Lose Control
One of the most underestimated stages for international investors is the Licence for Alterations (LFA) process. Once a lease is signed and landlord requirements are formally introduced, many projects slow down or are forced into significant revisions.
When this stage is not properly managed:
Project scope is reduced
Costs increase unexpectedly
Opening dates are pushed back
By supporting our clients from the Licence for Alterations stage onward, we aim to prevent these avoidable setbacks before they occur.
Adapting Investors to the UK Regulatory System
Kapeti Interior Architecture is not simply a design or fit-out studio — particularly for investors new to the UK market.
Our role is to:
Guide investors through the UK regulatory landscape
Assess technical feasibility during site selection
Identify HRB-related risks early
Deliver projects through an integrated Design & Build model
Balance regulatory constraints with design intent
Our objective is not to react to problems once they arise, but to protect the investment before those problems exist.
Leasing a commercial space and launching a restaurant in the UK requires far more than a strong concept and a good location. In High-Risk Buildings especially, working with a partner who understands UK regulations and takes ownership of the entire process is not a luxury — it is a necessity.
The most important decisions are made before design begins.And the right partner is the one standing beside you before challenges appear, not after they escalate.
Even while the lease agreement is still in the planning stage, please don't hesitate to include us in your projects and ask any questions you may have.
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