Shortage of premises for start-up ventures

Key Challenge: Issue particularly stark for industrial properties

Dundee and Tayside saw the biggest rise in new companies registered in Scotland in 2015.

Last year’s registration numbers did dip slightly compared with 2014, but overall the trend is upwards. There are many reasons for this. For some, the catalyst for setting up in business may be redundancy; for others it is the pursuit of an ambition to become their own boss.

Whatever the reason, there is no getting away from the fact that setting up your own firm is a challenge which takes guts and determination.

There are many and varied challenges facing new businesses.

Help and advice is available for the budding entrepreneur, but practical problems such as finding and securing business premises can be a very real obstacle.

Of course, not all new business require premises to operate from.

Some can be run from home, at least initially. Others are mobile. But for most the need to find and secure the right premises is of paramount concern, and can be a real challenge.

Contrary to what one might think, there is a shortage of small premises available at any one time that fit the needs of start-up businesses.

This shortage is perhaps particularly stark in the case of industrial properties.

For example, a search for workshop premises of up to 1,0002 ft in Dundee reveals only a handful are currently available for lease, with an even greater scarcity in those available for sale.

The small office market shows a similar picture.

Serviced offices can be an ideal solution for start-ups, offering all-in costs and flexible occupational periods.

However, this is reflected in their popularity, with the few serviced office providers in Dundee enjoying high occupancy levels.

Even shops can be difficult to find in the ‘right’ location – this being of more vital concern to retailers than to office or industrial users.

Ryden is frequently contacted by businesses – including start-ups – looking for small offices, workshops or shops, and the lack of available suitable accommodation is a real obstacle.

For those starting up in business, securing premises might involve negotiating and entering into a commercial lease for the first time.

That can be daunting. Our advice is to seek expert help.

Your commercial property agent, your solicitor, Business Gateway and other experts are all there to help you.

Listening to their advice will save you problems and money in the long run.

Finally, the most important advice I can give to start-ups struggling to find the first home for their business is to persevere, don’t lose heart, and keep in touch with your commercial property agent.

The right premises for you might not be available now, but next week or month they might be.

Sought after: small industrial units like these at West Pitkerro Industrial Estate in Dundee can be difficult to come by, according to Ryden.

Andy Boal said that start-ups often had to be patient in their search for new commercial premises.