The saturation of the oil and gas dominated commercial property market in Aberdeen is creating significant new lettings demand in Fife.
Neil McAllister of property consultants Ryden said companies looking to establish a presence in the North Sea gateway city were being forced to look further afield by high prices and a lack of available space.
“The difficulties satisfying requirements in Aberdeen are undoubtedly providing opportunities within the central belt,” said Mr McAllister.
“The lack of space available has created enhanced values in Aberdeen, and this pressure is likely to continue.”
Mr McAllister and joint letting agent Andrew Reilly recently signed new tenants at the Buko Business Centre in Glenrothes.
Industrial services firm Kaefer C&D have taken over two units at the park a total of more than 30,000ft2 of accommodation where they are assembling accommodation pods for a North Sea oil platform.
MH Engineering, a small local engineering company, has also recently relocated to Buko and said the move had boosted trade.
The firm started out 19 years ago to service the semiconductor industry but has concentrated on the oil and gas sectors for the past seven years.
Managing director Mark Hoskisson said the company, which specialises in CNC milling and R&D work, had been hit hard by the recession but was now seeing signs of a sustained recovery.
“I was hit hard just like everybody else and I had to sell a lot of things to keep our head above the water, but hopefully there are better times ahead now,” said Mr Hoskisson.
“We do a lot of work for Aberdeen and for a lot of local companies round and about in Glenrothes,” he added.
He said they do work for oil and gas but are also still doing a lot of work for hydraulics companies and also with Rolls-Royce Marine.
Mr Reilly of Andrew Reilly Associates said commercial space in Fife was in strong demand.
“The take-up over the course of the last year has been significant with in excess of 600,000ft2 taken out of the Fife market,” he said.
“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.”