Costs of new units in revamped Inverness Victorian Market described as 'bizarre'
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Tenants wanting to move into the revamped Victorian Market in Inverness will have to pay more than £47,000 a year for the most expensive unit – raising speculation over whether there will be sufficient uptake.
The £1.6 million project to create a vibrant destination is moving forward, with takers being sought for 15 new units due to open early next year.
The refurbishment will open up the market hall of the B-listed building – managed by Highland Council on behalf of the Inverness Common Good Fund – and aims to attract the best local food and drink producers.
But the costs of the new units, which are advertised in a newly-published brochure, have been described as “bizarre” and overly expensive.
The biggest market unit, measuring 1256 sq ft, is being marketed at an occupancy cost of £47,141 for the year.
The overall cost is made up an annual rent of £12,500 – which equates to £9.95 per sq ft – combined with a £34,640 service charge which will include cleaning, security, waste collection, electricity and general management of the market.
The cheapest unit is £8990 – the total being made up of £3750 rent and a £5240 service charge.
In comparison a prominent corner site at 118-122 Academy Street, with ground floor and basement space, is being marketed at £20,000 per annum for 2020 sq ft, working out at £9.90 per sq ft, with no service charge.
A ground floor retail unit with basement in Glasgow city centre’s Trongate costs £30,000 a year, equivalent to £5.73 per sq ft, again without service charge.
Inverness South councillor Andrew Jarvie was taken aback by the prices and did not see how they would attract the small niche traders the market aimed to target.
"They are very confusing and incoherent," he said.
"The service charge is almost three times the rent, which is bizarre.
"It seems to be going down the highest bidder approach, which seems to go against the whole ethos of what tenants we were going to have in there."
One Inverness trader, who is considering whether to put in an offer, was puzzled over the costs and did not feel the service charge took account of the different business needs.
"I have looked at the figures and compared them with other places and they don’t stack up," he said.
He felt there needed to be a rethink, given the impact of the coronavirus pandemic on businesses, and also pointed out the market would be competing with other new retail units in the city centre including Academy Street and Church Street, plus at the former Arnotts store in Union Street.
"It is a crowded field," he said.
Kasia Pogo ran her Saffron Oriental Food Shop in the Victorian Market for 13 years before relocating to Lombard Street last year due to the renovation work.
She also believed the costs of the new units were too expensive.
"If they are too high, no one will take them on board," she said.
Rama Chowdhury, of the Ambience Cafe in the Market Arcade, is currently operating a takeaway service due to the pandemic and says it is a struggle to survive.
He queried whether there would be takers for all the new units if the rents were too high.
"Only time will tell," he said.
A Highland Council spokesperson said: "The council has a duty to ensure that the Common Good Fund makes a return for the benefit of the people living in the city.
"When considering the rental both quantum and location are key considerations and when set against similar property the rental figures are considered competitive.
"We are confident that the refurbished market, along with the wealth of existing businesses already within the Market Arcade and Queensgate Arcade, will attract increased footfall and provide a great opportunity for businesses to invest.
"Despite the current pandemic, we have received a strong level of interest and positive feedback from interested parties."
The closing date for firms to make an offer for a unit is noon on May 26.
Related story: New units for let in Victorian Market
