It seems to be a tale of two cities for the commercial property sector in Scotland, as small towns continue to miss out on new office space.
In the latest Scottish Property Review, published by consultancy Ryden, it has emerged that specific regions are fighting for quality commercial space, as investors and developers seem to be flocking to the more larger cities such as Aberdeen and Glasgow. Edinburgh has also seen a sudden recent rise in commercial uptake, meaning that secondary regions such as Falkirk, Paisley and Coatbridge in the central belt have remained ignored.
Mark Robertson, Ryden’s head of consulting and author of the review, said to the Scotsman: “This is the most polarised I have ever seen the market. You have everything from ghost towns to gold rush towns.
“Across the commercial property market there is a flight to prime that began at the start of the recession and is continuing. There is a risk that secondary locations could be left well behind. The question of what the solution is going to be for some of the more tired towns is really difficult now.
One major take-up that has taken place in the region is a £65 million speculative office development at St Vincent Place in Glasgow.
Experts fear that this polarised and quite patchy investment market may not bode well in the long-term. Investment confidence may be on the rise, but it is particularly selective for the larger cities, leaving smaller towns in the lurch. If this report is anything to go by, these future prospects do not seem to be spreading out to secondary locations any time soon.
The report, which is published twice a year, looks at every major retail, commercial and industrial deal that has taken place in six month cycles. The report will be sent to all clients this week.