The Courier & Advertiser (Angus and Dundee)
Food operators targeting Dundee
New lease commitments show strong interest in Dundee but quality office space remains an issue
The commercial property market in Dundee is alive and kicking.
For example, the number of food operators targeting the city continues to grow.
The Overgate has attracted another new addition to Dundee’s food offering with Italian-American themed restaurant Frankie and Benny’s opening a new outlet in the centre.
Patisserie Valerie plans to open a first Dundee operation at 75 High Street (2,917 sqft), and continuing the food theme, Cafe Montmarte has opened at 91 Perth Road (947 sqft).
Independent eatery Avery & Co is also shortly to open at 304 Perth Road.
Outwith the city centre, Domino’s Pizza and Papa John’s are both opening new pizza delivery outlets at Kingsway East Leisure Park and Arbroath Road respectively, and Domino’s Pizza and Starbucks are also poised to open at Dunsinane Industrial Estate.
In recent years the majority of industrial property transactions in the city have involved small to mediumsized second-hand space, which is a trend that continues, despite an increasing shortage in the availability of good-quality, modern accommodation.
Encouragingly, a number of larger requirements have recently emerged which have resulted in new letting activity taking up some of the larger space availability.
Home delivery specialist Expert Logistics has secured its first depot in Dundee at Brunel Road (20,236 sqft).
In addition, one of the world’s largest providers of fuel retailing solutions, Tokheim Solutions UK, has expanded its Dundee operation by taking a lease of the former Scotherbs building at Longforgan (21,475 sqft).
Meanwhile, Aerospace Tooling has extended its occupation of approximately 40,000 sqft at Piper Street, Baldovie Industrial Estate for a further 10 years.
There are also a number of other large-scale requirements which remain to be satisfied, which is very welcome news.
But the Dundee office market remains relatively subdued.
Demand continues to be relatively healthy for smaller office premises, but the market offer is relatively thin and the choice of quality accommodation fairly limited.
Recent transactions include Reagent Games taking an assignation of a lease of 5,662 sqft of space within the Vision building, and Scotland’s largest mobile app developer Waracle relocating its Dundee headquarters to the Engine Room at Bash Street (3,703 sqft).
The lack of a real weight or choice of quality, modern office accommodation remains a concern, with the remaining space at River Court/DundeeOne, Vision and at West Port House being the exceptions.