Edinburgh office market improved in 2010

Posted on by John Cronin

A research report published by a leading commercial property agent indicates that the Edinburgh office market saw a marked improvement in 2010.

In the latest report published by property agents Colliers International it can be seen that there was a 24% increase in transactions for Edinburgh offices in 2010 compared to the previous 12 months. Total floor space take-up during the year amounted to 446,000 sq ft. As Edinburgh is a leading financial centre, lettings to the banking and financial services industry remain popular although activity is below average. Lettings amounted to 54,500 sq ft during 2010, substantially lower than the 10-year average of 114,247 sq ft.

waverley gateThe public sector accounted for one of the largest lets in the city centre with the NHS signing-up for 37,000 sq ft of floor space at the imposing Waverley Gate building (pictured – credit). There were no deals recorded for city centre Edinburgh offices over 40,000 sq ft and only 6 for space greater than 15,000 sq ft.

Colliers suggest that current demand is below trend and that they expect demand from public sector tenants to soften due to austerity measures. The first 2 months of 2011 have been strong however with significant lettings secured. Virgin Money has agreed to let 30,000 sq ft of floor space within the prestigious, Grade A, St Andrews Square scheme. Serviced offices provider Regus have extended their lease on 20,700 sq ft at Conference House.

Colliers estimate that some 300,000 sq ft of floor space remains available for occupation with average, city centre rental prices currently around £27.50 / sq ft.

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