CKD Galbraith reports significant signs of improvement in the commercial office sector as Edinburgh sees its strongest quarterly uptake in office space since the start of the recession in 2008.
The independent Scottish property consultancy found that overall take up in Q3 (July to September 2013) will be in excess of 270,000 sq ft – a 225% increase on the previous quarter (at approximately 120,000 sq ft).
Significant lettings include:
West Edinburgh • 85,000 sq ft at 3 Lochside Avenue (whole building) to Sainsbury’s Bank • 33,000 sq ft to Jardine Lloyd Thompson at 7 Lochside Avenue. Edinburgh City centre • 55,000 sq ft at Capital House to Bank of New York Mellon • 32,000 sq ft at Atria One to PwC • Skyscanner have taken the remaining landlord space at Quartermile One.
Michael Clements, marketing agent at CKD Galbraith, said: “The level of uptake this quarter has demonstrated that there is a strong demand for high quality Grade A accommodation in the Edinburgh market.
“However, these recent lettings have further eroded the supply of this type of premium office space, which is now extremely tight in the city centre.
“With little new development underway and several larger requirements in the market, it is likely that supply will tighten further in the short term, which should result in increased rental levels, reduced incentives and potentially some further pre-letting activity on other schemes in the city.”
He continued: “If this trend continues, we could shortly see the Edinburgh market flip back from being a tenant’s market to a landlord’s market.”
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