Dundee’s £26M James Thomson House: A Costly Gamble

Dundee's waterfront is undergoing yet another transformation with the development of James Thomson House, a £26 million, six-storey office complex that promises to deliver 52,600 square feet of Grade A office space. Named after the visionary 20th-century city architect James Thomson, the building is seen as a signal of intent to further revitalise the area.

On the surface, the project seems like a bold step in the right direction. Investing in infrastructure is essential for modernising cities, creating jobs, and drawing in businesses. But with hybrid working here to stay and many office spaces across the UK struggling to fill their desks, there’s a question that can’t be ignored: Does Dundee really need more office space?

Dundee City Council is adamant that the development is a critical part of its 30-year Waterfront Masterplan, which has already delivered notable successes like the V&A Dundee, the new railway station, and Slessor Gardens. These projects have undoubtedly made Dundee a more attractive and vibrant city, bringing in visitors and boosting the local economy.

Councillor Mark Flynn, Leader of Dundee City Council, sees James Thomson House as the next logical step in this broader strategy. He stated:

“This is a significant development for the city of high-quality modern office space, which will be vital to our efforts to attract and sustain jobs in the city.”

It’s a fair point. The city aims to house 350-400 staff within the building, and with large employers like Social Security Scotland already operating from the nearby Agnes Husband House, there’s clearly some existing demand. The new office space could attract private sector employers looking for modern, sustainable premises.

What’s more, the project isn’t just about office space. The ground floor will feature two commercial units, and the construction phase is supporting local suppliers, subcontractors, and employability initiatives, ensuring that the local community benefits from the development process.

While city officials have been keen to highlight the project’s potential to bring in new jobs and investment, it could be argueed that the demand for office space isn’t as strong as it once was. The COVID-19 pandemic shifted the way we work, with hybrid and remote working now embedded in the operations of many businesses. This shift has left large office buildings underutilised across the UK.

At a time when many companies are downsizing their office footprint, it’s fair to question whether 52,600 square feet of new office space is really needed. While Cllr Steven Rome, Convener for Fair Work, Economic Growth and Infrastructure, has claimed there is "strong interest" in the site, there’s a big difference between interest and signed lease agreements. Without tenants ready to move in, the development could risk becoming yet another "white elephant" project, a term used to describe costly infrastructure that fails to deliver a return.

Beyond demand, the issue of financial prudence comes into play. The £26 million project is being funded in part through the Scottish Government’s Growth Accelerator model, but questions remain about whether public money is being wisely spent.

The Growth Accelerator model is designed to stimulate investment in infrastructure that drives growth, with funding linked to outcomes like job creation. But if James Thomson House fails to attract sufficient tenants, the city could be left with an expensive underused asset, placing further pressure on local government finances.

While infrastructure spending is essential, especially in areas that have suffered from economic decline, it must be done with evidence-based demand. Cities across the UK are already grappling with office buildings that have low occupancy rates, so committing significant public money to a speculative development requires careful justification.

One area where James Thomson House stands out is its commitment to sustainability. The development is on track to achieve an EPC ‘A’ rating and BREEAM ‘Excellent’ accreditation, meaning it will be one of the most energy-efficient office spaces in the region. This is a crucial factor for businesses with sustainability targets, potentially making it more attractive to tenants.

There’s also a strong focus on active travel, with facilities for cycling and walking being integrated into the development. These features not only support sustainable transport but also align with broader goals for health, well-being, and reducing car dependency in city centres.

On the community side, the development is supporting local employment during construction, providing training opportunities for unemployed people and giving work to local suppliers and sub-contractors. This ensures that the benefits of the investment aren’t just felt in the future but are experienced now, as part of the project’s ongoing legacy.

Dundee’s ambitious efforts to revitalise its waterfront are admirable. Projects like the V&A Dundee have already put the city on the global map, and the council’s long-term strategy shows a city that’s thinking big. James Thomson House fits this vision, offering modern, sustainable office space in a prime location.

However, ambition must be balanced with financial realism. At a time when many office buildings across the UK are struggling with low occupancy rates, questions about whether demand truly exists for such a large office block are valid. While Councillor Flynn and Councillor Rome remain optimistic about strong interest from the market, it would be prudent to ensure that those expressions of interest turn into signed leases.

There’s also the matter of public accountability. If public funds are being used to develop the site, the public deserves to see clear evidence of demand. While it’s easy to point to the nearby success of Agnes Husband House, it’s essential to recognise that Social Security Scotland, a public sector tenant, doesn’t face the same commercial pressures as private companies.

Infrastructure spending is essential, and James Thomson House could very well be the right project for Dundee’s next phase of growth. Its commitment to sustainability, job creation, and economic regeneration ticks all the right boxes. However, in a post-pandemic world where hybrid working is the norm, the council must ensure that this investment is justified by genuine tenant demand.

Building shiny new offices is one thing, but filling them with paying tenants is quite another. If Dundee can do both, the project will undoubtedly be a success. If not, the city risks being left with a costly monument to miscalculated optimism.

Public infrastructure should be bold, forward-thinking, and ambitious, but it must also be based on realistic projections. With £26 million on the line, the stakes are high. Let’s hope Dundee's vision for James Thomson House lives up to its namesake’s original dream for the waterfront, a dream that was never fully realised in his lifetime.