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Wednesday, February 06, 2024

Edinburgh office take-up soars by 44%

The level of office take-up by occupiers in Edinburgh in 2007 was the highest in four years with a massive 44 per cent rise on the previous year, according to the latest figures from Jones Lang LaSalle.

Around 825,000 square feet office space was taken up by occupiers as firms secured accommodation in the face of a predicted major shortage of office space in the city centre during 2008.

The level of total office take-up rose to 1,075 million square feet when buildings acquired for development was also taken into account.

The analysis from the commercial property consultants has also revealed the amount of vacant office space available in Edinburgh has slipped to a rate of 4.9 per cent.

The research coincides with Jones Lang LaSalle's latest European Office Property Clock, which shows Edinburgh office rents are gaining ground on other major cities. Prime office rents rose two per cent on the previous year with the Scottish Capital in the up-phase of its rental cycles.

Edinburgh is now ranked 16th out of 31 major European cities for annual prime office rents.

Cameron Stott, director of agency and development at Jones Lang LaSalle Edinburgh, said: "There is only one office new development due to be completed in central Edinburgh this year, and demand for space remains strong. We are therefore forecasting rental growth during 2008."

"Just 30,000 square feet of new office space will be completed in central Edinburgh this year, AMA's Fusion in Logie Green Road. In addition, Buccleuch Property's three pavilions at Shawfair will also be completed, however, this will only provide 23,000 square feet on the south side of Edinburgh adjacent to the by-pass."

"The next city centre development to be completed will not be until 2009 with Scottish Widows Investment Partnership's Exchange Place development followed by Kenmore Property Group's Westport 102."

"With the shortage of office space in Edinburgh now upon us, and limited pipeline space in 2008, rental growth and reduced incentives are predicted.