Rising costs come home to roost for tenants |
By JIM DOW
TENANTS of commercial property in Scotland are facing increased service
charges because of market forces, according to Jones Lang LaSalle.
Its latest Office Service Charge Analysis report (OSCAR), which
analyses service charges in offices, shopping centre and retail parks,
shows a sharp rise in running costs.
Services charges are up on average by more than 7 per cent in shopping
centres, and between 12 and 22 in retail parks.
Service charges for air-conditioned office buildings have risen by 5.1
pc a year over the last 10 years and service charges for non-air-
conditioned buildings have risen by 8.3 a year over the last five years.
David Rodger, from Jones Lang LaSalle's property management team in
Glasgow, says: “Economic forces are pushing
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Service costs are rising across the sector
occupational costs forward. Tenants are now bearing the brunt of gas and
electricity prices rising ahead of inflation and increasing costs over
manual labour. Risk management and statutory compliance also result in
additional costs to the private sector.
“Rising service charge expenditure in Scotland is particularly prevalent
in shopping centres as with increasing competition, owners now need to
continually maintain their proprieties to keep them ahead of the latest
development.”
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| Digital company chooses Gala
By Stewart McIntosh
TWEEDBANK Industrial Estate in Galashiels has attracted Firstline
Digital, a satellite and terrestrial TV installer.
In its first move into Scotland, the company has taken Block 2, a
detached unit, extending to 10,820 sq ft with a yard area. Firstline has
agreed a two-year lease, with a break option at the end of year one, at
£4.10 per sq ft. The unit will be used for storage and distribution
purposes. The landlord is Aggmore.
Mike Davies, director of Firstline, said: “Tweedbank is in an ideal
strategic location, which will enable us to service the central belt of
Scotland and the north of England from the one centre.”
Tweedbank was purchased by Aggmore in 2003 and offers 18 units with a
total lettable area of 116,000 sq ft.
King Sturge and Buccleugh John Sale are joint agents. First Line Digital
(UK) Ltd was self-represented.
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