Commercial Property For Rent Scotland

 While the political turmoil surrounding Brexit has unsettled some commercial property sectors Dundee, the Scottish rental market appears to be holding up well.

A lease of commercial premises in Scotland is usually governed by law based on common law. In many ways a Scottish lease will look very similar to an English one.

Offices

A commercial property investment in Scotland can be a great opportunity. The country has a competitive advantage when it comes to business and office space due to its central location in the UK with easy access to five airports, two main railway lines, numerous motorways and trunk roads and water routes.

If you are planning to rent your office in Scotland then it is important to have a professional surveyor and advisor on hand. They can help to negotiate a fair rent with your landlord and also assist with any dispute resolution terms that may be included in the lease agreement. Often these will be contained in a standard rent review clause but can also vary from case to case. A specialised solicitor can advise on whether this clause should be inserted into the contract. A commercial solicitor can also provide advice on the procedure to follow in the event of a dispute at a rent review.

Retail

With Edinburgh and Glasgow gaining international recognition as hubs for innovation, Scotland's retail property market looks set to thrive in the years ahead. However, rents remain significantly higher than in the rest of the UK, especially for prime space in city centres.

In a commercial lease there will generally be a 'permitted uses' clause that lists the purposes for which you can use the property. Unless you have written permission from the landlord, you will not be permitted to use the property for any other purpose.

Inflation indices are often used to guide the annual rent review. However, a link to such an index can be difficult to prove and the lease should always be read carefully. Unlike England, Scotland does not have a statutory right to a renewal of a commercial lease. This means that if a lease does not terminate by reason of a breach, it will automatically continue until the next rent review.

Industrial

Scotland is the ideal location for business to thrive with good access from all five major airports, two main railway lines and numerous motorway and trunk road routes. A variety of modern commercial property options to rent in Scotland offer mix-use business premises for both office and industrial use.

Generally speaking, a Scottish commercial lease will look similar to an English one. However, there are a number of key differences to be aware of.

In Scotland, an assignment of a commercial lease requires the consent of the landlord. Consent must be given or withheld in accordance with the terms of the lease. Landlords may not unreasonably withhold their consent.

Unlike in England, landlords can include clauses in a Scottish commercial lease to link the review of the rent with an inflation index. This is usually the Retail Prices Index (RPI). A minimum and maximum increase on the market rate may be provided for. These provisions help to ensure that the rent keeps pace with economic conditions.

Leisure

As one of the UK’s leading retail and leisure property specialists, Knight Frank has expertise across all areas of commercial real estate. Whether it be navigating omni-channel retailing, economic headwinds or retailer insolvency, we offer expert and trusted advice to landlords and tenants alike.

Unlike other sectors, the Scottish leisure property market is still relatively healthy. Despite Brexit concerns, the country is still a tourist destination and boasts a strong domestic economy. This provides strong footfall for leisure properties, particularly those situated in the key cities such as Edinburgh and Glasgow.

Leases in Scotland are generally based on common law and will tend to look quite similar to an English one. However, heritable title (and leases for more than 20 years) have to be registered at the Land Register of Scotland which was introduced in 1979 and updated in 2014. A registration also creates a Land Register Title Sheet and sets out ‘burdens’ that are attached to the property.