Green shoots

Expert sees encouraging signs in commercial property –

It has been a difficult year for the industrial property market in Fife.

The area is not alone but has had to absorb the abolition of 100% rates relief of vacant properties, and other factors such as the depressed oil price.

There are also political and business issues relating to Brexit and the potential for a second Scottish referendum which, for most businesses, is a cause for significant concern.

Given the stresses and strains, the industrial market in Fife is, at best, holding its own and slowly making the changes and adjustments required to suit the ever-changing marketplace.

There are some signs of positivity, with deals being completed in February for around 100,000ft2 of good-quality warehousing accommodation at a price of £2.5 million.

These deals were at Unit 2 and 3 on Eastfield Industrial Estate, Glenrothes, which was previously owned and occupied by Velux. The purchaser was Flexel International.

In April, two further properties within the Velux portfolio were sold to Allson Warehousing as a single lot.

Of the nine units brought to the market last year, as a result of Velux manu- facturing operations being relocated, five of the buildings are now sold.

We understand there are further units under offer. This is encouraging, bearing in mind the sales completed so far have been with owner-occupiers rather than investors.

At Dunfermline’s Pitreavie Business Park the Caledon Property Group completed the acquisition of Units 1, 5 and 8. This finalises the sale of former Simclar International Properties.

This transaction has only just completed and we have not been informed of the intentions of the Caledon, but we understand that Unit 5 (7,930ft2) is already tenanted and there is significant interest in leasing portions of Unit 1 (45,446ft2).

Unit 8 is a building of 64,799ft2 on a site area of around four acres, and it is understood this building is likely to be demolished to make way for new accommodation, which would be an encouraging step for the market.

Also on an encouraging note, Cashmaster International, currently based in traditional accommodation in Rosyth, has recently acquired new premises on St David’s Business Park in Dalgety Bay of around 10,000ft2.

Most industrial properties throughout Scotland were built in the 1970s and 1980s and, for this reason alone, there is an ongoing need and demand for new accommodation.

This is the market’s biggest challenge. We are aware of proposals for new-build accommodation to be constructed by Scarborough Muir at Rosyth Europarc and also by Fife Council, which has a good supply of land ready for such development.

A number of units at Fife’s Pitreavie Business Park have changed hands in recent months.

Neil McAllister said that new industrial accommodation was needed in Fife.