Commercial Letting Policy

The Estates Management team manages the Council’s corporate property portfolio with the objectives of facilitating economic development and job creation.

The corporate portfolio is comprised of shops, industrial units and offices that are let on commercial terms to local and national businesses. The income receivable from these properties provides a valuable revenue stream to support the provision of Council services across the City.

In order that the Estates Team can deal with the large number of enquiries it receives to let its commercial properties, the following policy is employed in dealing with the letting of the corporate portfolio:

Shops

Permitted uses for the Council owned shops will generally fall within Class 1 of the Town and Country Planning (Use Classes) (Scotland) Order 1997.

Where the Council owns multiple shops in a parade, it will endeavour to ensure there is a good mix of uses/services available for the benefit of surrounding communities.

Industrial Units

Permitted uses for the Council industrial units fall within Classes 4, 5 and 6 of the Town and Country Planning (Use Classes) (Scotland) Order 1997.

The Council requires to manage its industrial estates in accordance with good estates management principles and, therefore, not every proposed use falling within these categories will be deemed appropriate in all estates. It is, therefore, at the Council’s discretion to determine whether a proposed use is suitable in a particular location.

Vehicle related business activities or any other use that may impact on the amenity of an estate or the surrounding area are limited or prohibited in the Council's terraced industrial estates. This is primarily where it is considered the proposed use may inconvenience existing occupiers or create a nuisance, environmental or parking issues.

Offices

Permitted uses for the Council owned offices will fall within Class 2 and Class 4 of the Town and Country Planning (Use Classes) (Scotland) Order 1997.

Local Government (Scotland) Act 2003

The Local Government (Scotland) Act 2003 makes it a statutory obligation on the Council to secure best value. This includes a duty to achieve best value from its commercial property portfolio.

All lettings of Council properties must, therefore, be undertaken at market value as assessed by the Council’s Estates Management Team who are all registered members of the Royal Institution of Chartered Surveyors.

Third Sector Organisations

The Council regularly receives enquiries from third sector organisations seeking to let its vacant commercial properties at less than market value.

In the interests of fairness in dealing with such applications/requests, the following approach will be taken in considering such matters:-

The proposed property must have been marketed for let and unoccupied for more than one year
The Council must not be in discussions with another party for a commercial let of the property.
The proposed use of the property must not directly compete with any other existing occupiers in a parade, at the discretion of the Council.
The proposal must not result in financial detriment to the Council during or after the potential let.
The occupation at less than market rental will not exceed one year.

Commercial Letting Policy

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Dundee City Council