Converting a small 3200 sq foot commercial building to a Duplex

[Charlene Turczyn]

We currently own a small commercial building, that I had my business in for a number of years.    Springfield Illinois is losing businesses at a rapid pace.    Our commercial building is zoned for multi family and is in an area surrounded by 4 and 6 plexes.   It is on 1.25 acres.  The commercial building is 3200 sq feet and has 2 heating/cooling zones.   The vacancy rate in the area for residential rental is 5%.   I can expect 1200.00 per month from each tenant side.  Commercial rents were going for about 10 per sq foot modified gross and have now dropped IF you can find a tenant.  The vacancy rate for commercial in Springfield is over 25%.    The building is located near(but not on top of) an exit to Rt 55 which easily takes you into St. Louis in an hour and 30 minutes and the airport.  The location takes you easily to all points into Springfield.  The building is also near the campus of the Springfield branch of the University of Illinois.    I foresee the building being empty for 2-3 years if we continue the commercial path.    The building was completely gutted in 2011 when I relocated my business, so its got new windows, new mechanicals, new insulation.    Would dividing the building in two and adding a kitchen and bathroom, make it worthwhile as a long term duplex rental?