New-build projects attractive

Demand for industrial space in the Dundee area has held up well despite the challenges of the pandemic.

Nationally, vacancy levels are low and availability limited, particularly for small and medium-sized units.

In Dundee, particularly popular is good-quality modern accommodation of 3,000sq ft or less.

Small, modern workshops of 750sq ft to 2,000sq ft are in strong demand, being popular with small businesses and the self-employed.

Previously, businesses of this type would occupy older properties – possibly forming part of a larger complex which had been sub-divided over the years.

But the desire for older properties of this nature has been deteriorating for some time and demand has been shifting to the newer developments that have popped up at various points around the city.

This has prompted landlords to reconsider speculative development, which for some time has not offered acceptable investment returns and was considered to carry too many risks.

A further incentive to speculative development comes in the form of the Scottish Government’s Business Growth Accelerator Relief offering rates relief to developers of new-build property.

Originally relief was for 12 months, but from next month it will be extended to 36 months. This gives developers more confidence to press on with such plans.

Among fresh projects locally is Dundee Industrial Association’s development of 25 new-build starter units.

These will provide accommodation in a well-located, established business location, handy for the local and national road networks.

The units at the North Tay Works development at Loons Road will have allocated loading and parking areas, and construction will be completed soon.

A similar project at Tom Johnstone Road, West Pitkerro Industrial Estate will also provide goodquality accommodation in an established business location with the same good connectivity.

These new projects are attractive for many good property reasons, but also by virtue of the Small Business Bonus Scheme, where qualifying tenants can claim 100% rates relief for properties with a rateable value below £15,000.

No, or limited, outlays on repairs make these units financially attractive, too.

Dundee Industrial Association units at North Tay Works in Loons Road, Dundee.