Businesses are being offered free rent for a year to commit to opening in the Victorian Market in Inverness.
As part of a £1.8 million project, the market hall was closed in 2021 and redesigned to accommodate 15 new food, drink and retail businesses.
It re-opened in September last year with hopes of revitalising the city centre.
Seven of the units are currently occupied, with one under offer and another available on flexible weekly terms.
Confidence growing
A report to Highland Council’s City of Inverness area committee on Monday says confidence in the Victorian Market foodhall is growing despite facing initial economic difficulties.
“The implications of the significant economic pressures outwith our control have provided for a perfect storm requiring special measures to be taken to ensure the success of the market.
“These measures have understandably impacted initial income projections.”
To encourage tenants to sign up to a new five-year lease, a one-year rent-free period and a 50% reduction on service charge is being offered.
“This is in line with market conditions and common practice for commercial developments.
“Not only will this encourage tenants to commit to the market, but the aim is to keep it competitive with other opportunities.”
It is anticipated that rental income levels will begin to recover in 2024-25 as the number of tenants increases and service charges are fully implemented.
The report adds: “Despite major challenges around significant economic pressures it is positive that confidence is building, and we are confident that we can gradually fill the remaining units in the new market foodhall, noting that the Market Arcade remains fully let.”
It says the new-look market has improved its contribution to the economic vibrancy of the city.
The facility has created a modern open-plan market and helped increase footfall, especially during traditionally quieter times of the year.
Opening hours have been extended “and as a result, people are beginning to treat the market as a city centre destination, for not only shopping but a quality food experience whilst enjoying good company”.
Management review proposed
The report says feedback has consistently shown that market visitors, both local and tourists, find the atmosphere welcoming.
New public toilets are also proving to be an excellent asset, especially in attracting coach tour and cruise liner business.
It recommends carrying out a review of the management and commercial development arrangements for the market.
This will build on work over the past three years and consider how the attraction should operate in future.
It is proposed to extend the current arrangements for a further year, until November 2024.
A report on the review, including recommendations for future management and commercial development, is due by June 2024.
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