The oil and gas stranglehold on Aberdeen industrial and office space is forcing companies to look further afield, one industry expert has claimed.
Surging prices, fuelled by the work space shortage, are also increasing an outward expansion from the North Sea gateway city, said Neil McAllister of commercial property consultants Ryden.
“The lack of available space available is responsible for enhanced values in and around Aberdeen — and that pressure is only going to continue,” he explained.
“The difficulties satisfying requirements in Aberdeen are undoubtedly providing greater opportunities within the central belt,” added McAllister, whose firm is a joint letting agent for the Buko Business Centre in Glenrothes.
Among recent businesses moving to the estate south of the town are industrial services firm Kaefer C & D which has taken two units totalling more than 30,000 sq ft. It has now begun assembling accommodation pods for North Sea oil platforms.
MH Engineering has also relocated to Buko where its managing director, Mark Hoskisson, claims turnover is once again rising after struggling to survive the recession. “We were hit hard just like everybody else and we had to work very hard indeed just to keep our head above the water, but hopefully there are better times ahead now,” he said.
“We specialise in research and design and precision milling and at last are seeing signs of a sustained recovery which, in many ways, made locating affordable new premises even tougher,” added Hoskisson, who lists Rolls-Royce Marine among his clients.
Fellow letting agent Andrew Reilly, of Andrew Reilly Associates, confirmed industrial and commercial space in Fife was now in strong demand.
“The take-up during the past year has been significant,” he explained, with more than 600,000 sq ft being removed from the Fife property market.
“This take-up and the ongoing requirements are, in my view, creating serious difficulties when occupiers are considering their space requirements generally.
“The lack of stock and the enhanced demand is likely to create upward pressure on rents generally as the demand continues to outstrip supply,” he warned.
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