Chris Todd, Partner in our Commercial Property team, authored the following article which recently appeared in The Courier’s monthly business supplement, Business Matters.
Growing confidence among Scotland’s food and drink businesses is helping to boost activity in Dundee and Tayside’s commercial property market.
Consumers’ interest in local produce and independent retailers is fuelling optimism and investment among small businesses. In recent months, we’ve seen a number of food retailers take on new premises and new staff in Dundee and Tayside.
But it’s not just the ambitions of Scotland’s food and drink sector that are supporting the commercial property market in Dundee and the wider area.
We’re also seeing growing confidence elsewhere in the retail, hospitality and leisure sectors in Tayside. There’s been a marked increase this year in commercial property activity among small businesses, ranging from hairdressers and beauty salons to bars and restaurants.
Underlying much of this optimism is the sense of anticipation about progress on the Waterfront project, the opening of the V&A, and the influx of tourism and commercial activity this will bring.
The opening of the new train station in 2018 is also generating interest in nearby commercial and retail property, including the units at the station complex itself.
In the office sector, we’re seeing a migration of professional firms from traditional townhouse offices in the city centre to modern, open-plan space, in areas such as Seabraes.
However, we don’t see this migration as a one-off process. Further down the line, we expect the regeneration of Dundee’s city centre to revive interest in the Tayside’s old professional services heart as well.
So, the increase in commercial property activity in Dundee is not just about the Waterfront; rather, it’s a continual process that will encompass different areas of the city over the next few years, as different phases unfurl.
Step beyond the city centre and the Waterfront, and the same buoyancy is apparent in industrial property.
Industrial units are attracting a good level of interest, both from new entrants to the area and from existing businesses looking to extend or cement their presence in the area. Both acquisition and leasing activity are robust.
At sites such as Dryburgh Industrial Estate, for example, we’ve seen interest from national as well as local businesses, all looking to secure their presence here over the next 5-10 years at least.
And what’s attracting businesses to invest in Dundee – whether in industrial units or other commercial property? Firstly, their confidence that regeneration plans are coming to fruition.
Announcements such as the Tay Cities deal, which could bring as many as 15,000 jobs to the region, and the Scottish Government’s recent decision to headquarter its new social security agency in Dundee have added momentum.
Secondly, rents and rates remain competitive in comparison to other locations such as Aberdeen and Edinburgh, and there is excellent value to be found. Dundee’s position on the north-south transport location also makes it attractive to anyone from delivery companies to building merchants.
Given these different factors, the outlook for commercial property in Tayside looks good – with strong activity combined with continuing good value across all types of property.
If you would like further information or advice about specific commercial property matters, a member of our team would be happy to help.