Commercial Property For Rent Scotland

There are many options for businesses looking to rent commercial property in Scotland. This includes shops, offices and industrial units.

A Scottish commercial lease will generally look quite similar to an English one (because forms of lease have tended to be shaped by the needs of London-based investors). However there are some key differences.

Leases

Despite the political turmoil in the UK, the commercial property market in Scotland remains solid. Rentals are rising and demand is strong. There are many solutions available to businesses looking for office space and warehouses in Scotland, including serviced offices, conventional offices, and industrial facilities.

In Scotland, lease agreements are normally governed by common law rather than statute. This means that a Scottish commercial lease will normally look quite similar to one in England. However, there are some key differences to be aware of.

The main difference is that at common law, substantial destruction of a leased property will trigger an automatic termination. This is a significant departure from the position in England and Wales where a tenant can have a right to have their lease renewed automatically on expiry, subject to the usual notice periods. This is a significant issue which the Scottish Law Commission has proposed reform to address. This will be in effect from 1 July 2022.

Licensing

Unlike leases, licences can allow occupiers to use commercial property for short periods. Licences typically last for one year and they give the parties greater flexibility.

It’s common for landlords to grant a licence rather than a lease in situations where the occupier wants to solve a short-term property problem (eg trading at an event). Licences can also be used for industrial or retail purposes.

In Scotland, leases are registered in the Books of Council and Session which means that landlords have more proof of a legal agreement. This also helps them take action quickly if tenants don’t fulfil their lease obligations.

In the case of a monetary breach, landlords are required to give tenants 14 clear days after service of a formal warning notice to remedy the breach. In the case of non-monetary breaches, landlords may not terminate a lease unless they consider it reasonable to do so in all the circumstances of the case.

Tenants’ rights

In Scotland, the terms of a lease are usually agreed by an exchange of letters called missives. This involves the solicitors of both parties. Once these missives are concluded, the agreement will become fully legal and binding.

A guarantor or surety is a person who promises to pay any losses that you might incur if you cannot fulfil your obligations under the tenancy agreement. A schedule of condition is an inspection report completed at the beginning of the tenancy. It will include a description of the property and photographic evidence. This will be used at the end of your tenancy as a comparison tool to identify any damage that you may have caused.

The landlord has the right to end your tenancy early (irritate) when you fail to keep to your duties under the lease. Most leases will contain a clause that allows them to do this if you breach the terms and conditions of the contract. If there is no clause in the lease, landlords can use common law rules to irritate you.

Rents

Although the political turmoil across the UK may unsettle some sectors, the Scottish commercial rental market appears to be holding firm. Rental values have remained relatively high and many properties continue to be sold at record prices, particularly those located within tourist areas of the country where footfall is higher.

There are a range of commercial property solutions available in Scotland, from serviced office space to industrial units and warehouses. The best location options offer easy access to airports, major railway stations, and numerous motorways and trunk roads. In addition, the majority of modern commercial properties to rent in Scotland have mix-use premises, providing flexibility and a cost-effective way of expanding your business.

As demand for quality offices in Edinburgh and Glasgow continues to outstrip supply, landlords are expected to increase rents in these city centres. However, shortages of prime logistics space could lead to stronger rental growth for these types of properties. In both cases, the incoming tenant will assume all rights and obligations under the existing lease.