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Charlotte House for sale

Charlotte House.

SHETLAND’s only large office accommodation block is on the market for a sale price in excess of £2.3 million.

Charlotte House, in Lerwick’s Commercial Road, offers the investor a return of around 15 per cent, according to sales agent Eric Young & Co.

Annual rent yield currently stands at around £365,000, due to rise to £424,000 by May 2017. This is in line to rise further to £496,000 by 2022.

The 19,419 square foot building, the only open plan office accommodation available in Shetland, is currently let to the secretary of state for communities and local government until May 2037.

The majority of the four storey building is occupied by local and national government offices, including the job centre and Scottish government’s rural affairs office, but a number of rooms on the second and third floor are currently empty.

Occupying the ground floor, Shetland Islands Council has just completed a major redistribution of its office space in the building.

Up until a year ago the council’s finance and revenue section operated from Charlotte House, but has now moved to the new headquarters at North Ness.

Since this relocation, the SIC’s trading standards, environmental health, psychological and sensory services have all moved into Charlotte House instead.

The Orkney and Shetland Valuation Joint Board has recently moved back to its previous office at 20 Commercial Road, across the street.

A spokesman said the council was in the process of reducing the number of offices they were operating from.

Eric Young & Co said: “Shetland continues to benefit from significant inward investment from the oil and gas industry resulting in a particularly buoyant local economy in recent years.

“(This is) an opportunity to invest in open plan office accommodation in Lerwick where at the present no identifiable supply exists.”

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