The Tayside office and retail market has generally performed reasonably well over the last few years, particularly with premises that are compact and as such relatively affordable. Both rental and capital values had been improving within the Tayside market. The general lack of any new privately owned space being available within the Tayside office market has resulted in surplus stock being taken up by market demand resulting in rents and incentives starting to improve, from a Landlord point of view.
It is however difficult at this moment in time to predict what will happen within the next 12 months or so within the office / retail sector. The general commercial property market in the traditional ‘High Street’ city centre retail areas continues to face challenges with there being a number of voids and a downwards pressure seen on both rental and capital values on an ongoing basis across all sectors. Conditions have to a degree stabilised with a realignment of rental pricing to a sustainable level allowing for some continuity of occupation. This is a scenario that is not unique to Tayside and can be seen in a number of other similar major cities across the country.
Despite the wider market uncertainty the industrial, and distribution manufacturing sectors in Tayside continue to perform well into 2025. Principle demand does tend to focus on established trading estates adjacent to motorways and newer / well maintained properties which offer a greater degree of affordability and lower repairing obligations. A lack of stock, particularly for new build premises, has helped to keep capital and rental values stable over recent years and will be an influential factor in terms of the subject’s marketability and value.
