Several high-end restaurants have opened in Edinburgh recently. Roland Smyth, writing in the Scotsman Newspaper in July 2018, says that they have had a positive influence on commercial property.
There are many high-end restaurants in St Andrews Square that are near premium commercial developments, the Registers and the Gleneagles Club. Some of the restaurants opening in Edinburgh are branches of well-known London brands such as the Ivy, but they tend to use locally sourced ingredients.
Smyth, who is head of Scottish hotels and leisure group at CMS, argues that high-end restaurants help revitalise an area. They are attractive amenities for people living in city apartments or working in premium offices. They increase tourism and this benefit other businesses in the city, while also creating employment opportunities.
When a business is looking for offices, the amenities of the local area are a considered, as well as the cost, standard and suitability of the property. If there are high-end restaurants in an area, this will probably not be the deciding factor, but they can add to the overall impression of the local environment.
Of course, property investors do not purchase commercial property just because it is near premium restaurants. They apply for commercial mortgages for investments that they expect to provide good rental yields and capital growth. If premium restaurants make an area more attractive, this could influence prospective tenants, so nearby premium restaurants will certainly not harm the attractiveness of a commercial property investment.