Empty Industrial Units 'Could Be Demolished Within Weeks'

Dozens of old Scottish industrial units could be demolished within weeks unless plans to slash the empty properties rates relief are revisited by the Scottish Government.

Experts at Colliers International have warned that owners of empty industrial properties will be liable for 90% of the usual rates after three months from 01 April.

It is thought this would result in many units being destroyed, as those who own old units are unlikely to find an occupier by the deadline.

While many owners are now seeking quotes from demolition experts, Colliers said it isn't too late for the government to encourage landlords to redevelop dilapidated units into modern space.


Peter Muir, director and head of rating for Colliers International in Scotland, said: "The changes to rates relief, which also affect smaller offices and retail premises, will have an enormous effect on the market. Not only will many older buildings be demolished, but developers are being put off from building industrial units on a speculative basis as they will be hit with a hefty bill should they fail to find a tenant immediately.

"The changes were introduced without consultation with the commercial property sector, and I do not believe the Finance Secretary intended these consequences. With six weeks to go, it isn't too late to make amendments to the rules on rates relief, but the government needs to start talking to landlords immediately to find a compromise."

The changes to rates relief were expected to produce windfall of tens of millions of pounds for the Scottish Government, but Colliers believes the total could be considerably lower as many landlords will opt to demolish their properties.

[Pictured: Peter Muir, director and head of rating for Colliers International in Scotland]

(LM)