The Courier & Advertiser (Perth and Perthshire Edition)
Attractive destination
New Queensferry Crossing key to unlocking Fife’s commercial potential
Regional towns in Scotland continue to experience low occupational demand which restricts speculative development, mainly due to oversupply of property. However, these market conditions can offer attractive, competitive rental levels for occupiers.
In Fife we have seen an active SME market attracted by the wide choice of affordable premises on offer.
During 2016, following Sainsbury’s Bank occupying 1,950 sqm of space at Caledonian House in Rosyth, we saw a further 58 office lettings completed in the region, totalling 7,855 sqm.
Lettings included Landis taking 464 sqm at Largo House, Carnegie Avenue, Dunfermline, and Raytheon UK taking 838 sqm at Grantsmuir Road, Kirkcaldy.
In addition, commercial property sales accounted for an additional 8,103 sqm of transactions in 2016, with the largest being Fife College’s acquisition of the 6,402 sqm former Shepherd Offshore Services building in Halbeath.
Recent investment in infrastructure now gives Fife the capacity to attract larger occupiers in the future.
The completion of the Queensferry Crossing will improve the all-important connections to Edinburgh and beyond.
This is coupled with Fife Council and adjoining local authorities and partners looking at the potential for a new employment location around the upper Forth and the potential for Tax Incremental Financing projects.
We are already seeing property developers looking at bigger office and industrial opportunities in the region.
At Rosyth waterfront, a joint venture between JW Muir and Scarborough has created more than 100 acres for commercial development.
JW Muir has also acquired the near-2,000 sqm Arrol House in Rosyth and undertaken a comprehensive refurbishment to offer Grade A offices within minutes of the new crossing.
On a smaller scale, Fife Council is building seven units at Queensferry Technology Park to encourage growth in the SME tech market. It will complete in the autumn and expands on the Fife Renewable Innovation Centre.
The aim is to promote Fife as a destination for diverse industry sectors which have the potential for growth.
As demand for commercial property in the major cities of Edinburgh and Glasgow increases some predict the improvement will be felt across the central belt market.
If this improvement comes, and rents and values reach the levels required to justify speculative development, Fife is one of the best placed regions to attract interest from developers.