Period office buildings out of fashion in Perth

Several firms have migrated to modern units

Since the economic downturn nearly a decade ago, demand for new office space has been a key indicator of the improvement in the overall economy in Scotland.

In Perth, the result of the downturn was a halt in new speculative office developments, a sharp reduction in demand and decline in asking rents.

The office market faced a lengthy period where demand was low, as was the supply of good-quality modern office space, but the supply of vacant older stock increased.

Recently though, the office market in the city centre has seen major changes, with firms such as Campbell Dallas, Punter Southall and Thorntons vacating premises in favour of more modern pavilions at Whitefriars.

This migration from older period buildings to more modern units is a trend which has been seen throughout Scotland and demonstrates that, whilst environmental concerns are becoming more of a consideration for the larger firms, the reality is that plentiful car parking is still at the forefront of the decision-making process when expansion/relocation is being considered.

Period buildings with poor energy efficiency performance are now viewed by most as incompatible with the modern office environment and, as a result, the number of office conversions to residential or alternative leisure use has risen steadily over the past decade.

Former council offices at Blackfriars, a listed period building in a central location with plentiful parking, are currently on the market.

The selling agents have confirmed interest has come mainly from developers, although there has been interest for retention of at least some of the office space in most inquiries.

Broxden Business Park on the outskirts of Perth would be regarded as the prime business and office location in the area.

Available office space in the park has been filling up in recent years.

A new office development is nearing completion on the estate.

The building, as yet unnamed, will comprise a modern business centre offering individual suites of offices for small to medium-sized businesses.

This is a model which has been available elsewhere in the city at Algo and Inveralmond business centres and at King James and Riverside House in the harbour area.

We understand these buildings are nearing capacity, demonstrating a sufficient level of demand exists for the new development to be a success.

A sub-market report from commercial property site Costar shows that, in general, the office market in Perth and Kinross continued to outperform the towns and cities in central Scotland in the last few years, with both vacancy rates being lower and average rental rates and sales volumes being higher.

Period buildings with poor energy efficiency performance are now viewed by most as incompatible with the modern office environment.

GAVIN RUSSELL

Broxden Business Park is considered one of the prime office locations in the city.