Wednesday, September 20, 2023
Drivers Jonas crane survey predicts office shortage in Edinburgh
Reduced availability of office space in Edinburgh has put upward pressure on rents,
according to the most recent survey produced by Drivers Jonas in Edinburgh.
Ian Lochhead, Partner at Drivers Jonas in Edinburgh, commented: "The low level of
development completions in 2005, coupled with the steady take-up of Grade A office
space has reduced availability and put upward pressure on rents, increasing lease
lengths and decreasing incentive packages. This will lead to a period of
supply/demand imbalance; however, this could be addressed by 2008 when potentially
up to 1.3 million sq ft of space will be delivered."
Lochhead continued: "A large proportion of the traditional office stock has been
returned to residential accommodation in the form of complete town houses and
residential conversions. Three major City centre schemes are now under construction
leading to an improvement in the new build office development pipeline. Whilst
there is potentially a large amount of Grade A space in the pipeline, the majority
of this remains in the planning stages."
The survey looks in detail at some of the headlines in the commercial property
sector in Edinburgh during the past 12 months, including the new 350,000 sq ft RBS
HQ at Gogarburn and how the predicted de-population of City centre offices due to
the loss of RBS as a major occupier has failed to materialise. In the past 12
months, most of the significant moves came from members of the surveying community
including Knight Frank, GVA Grimley and Drivers Jonas, who all moved from
traditional City centre accommodation into modern open plan office space on the
edges of the expanded Exchange District.
In the pipeline, there are approximately 16 schemes planned for Edinburgh City
centre which will provide 2.1 million sq ft, predominantly in the Exchange District.
Prime rents slipped back in the years 2001 - 2004 from the previous high of £29 per
sq ft. Recent transactions agreed at headline rents of £27.50 per sq ft have been
accompanied by generous incentive packages often equating to up to one month per
year of term certain and in some circumstances, more.
-------------------------------------------------------------------------------------
The new Property Executive business directory has just been launched. To add a free listing for your company click here.
according to the most recent survey produced by Drivers Jonas in Edinburgh.
Ian Lochhead, Partner at Drivers Jonas in Edinburgh, commented: "The low level of
development completions in 2005, coupled with the steady take-up of Grade A office
space has reduced availability and put upward pressure on rents, increasing lease
lengths and decreasing incentive packages. This will lead to a period of
supply/demand imbalance; however, this could be addressed by 2008 when potentially
up to 1.3 million sq ft of space will be delivered."
Lochhead continued: "A large proportion of the traditional office stock has been
returned to residential accommodation in the form of complete town houses and
residential conversions. Three major City centre schemes are now under construction
leading to an improvement in the new build office development pipeline. Whilst
there is potentially a large amount of Grade A space in the pipeline, the majority
of this remains in the planning stages."
The survey looks in detail at some of the headlines in the commercial property
sector in Edinburgh during the past 12 months, including the new 350,000 sq ft RBS
HQ at Gogarburn and how the predicted de-population of City centre offices due to
the loss of RBS as a major occupier has failed to materialise. In the past 12
months, most of the significant moves came from members of the surveying community
including Knight Frank, GVA Grimley and Drivers Jonas, who all moved from
traditional City centre accommodation into modern open plan office space on the
edges of the expanded Exchange District.
In the pipeline, there are approximately 16 schemes planned for Edinburgh City
centre which will provide 2.1 million sq ft, predominantly in the Exchange District.
Prime rents slipped back in the years 2001 - 2004 from the previous high of £29 per
sq ft. Recent transactions agreed at headline rents of £27.50 per sq ft have been
accompanied by generous incentive packages often equating to up to one month per
year of term certain and in some circumstances, more.
-------------------------------------------------------------------------------------
The new Property Executive business directory has just been launched. To add a free listing for your company click here.
<< Latest news main page