Scotland’s office occupier markets still performing at below average levels.
Economic recovery from a banking crisis-induced recession is notoriously weak. Aberdeen aside, the lack of a solid foundation to the recovery means that Scotland’s occupier markets are still performing at below average levels, while the development sector remains moribund. The investment market appears to have found some stability but trading is thin and these conditions will persist during 2011. These are the main findings in Ryden’s 68th Scottish Property Review, an authoritative report on the country’s commercial property sector.
Scotland’s economic recovery remains weak. Negative growth in late 2010 may, as in the wider UK, be offset by growth in early 2011 when data is published but the foundations of economic recovery are not yet solid.
The recent trend of sales and lettings of office space in Edinburgh and Glasgow running below average, but above average for office space in Aberdeen continues. Very limited new development afflicts all locations but has different implications for each city.
The lack of any speculative new-build development and dwindling supply of new Grade A office space in Glasgow and better quality Grade B property is reducing choice for local companies seeking to expand, and for potential inward investors. Continued lack of funding, allied to the time required for securing planning and construction, means there is little prospect of any new city centre development before late 2013/14.
Edinburgh has no new office developments scheduled for completion prior to 2012. Edinburgh Council’s HI development is due in 2013 and it is understood that Fordell Estates is preparing a planning application for quality offices at The National Trust for Scotland’s former premises, which could lead to space being available in 2013. Other development sites with planning consent have yet to commence.
The market for office space in Aberdeen has seen a surge in demand, due to the price of oil. Take-up figures in the last six months to March are up 45% to 355,209 sq ft and beyond this, a large number of available office suites are currently under offer. Within the city centre there is virtually no Grade A space available, with the exception of the final remaining suite in Union Plaza (pictured) and three floors within City Wharf.
There are fewer transactions being agreed due to a combination of less active investors and limited suitable stock coming to the market. Demand is expected to continue to be strong for investments which offer good quality and well-secured long term income. The lack of available stock in comparison to the number of investors in the market is leading to more competition for suitable assets and strong prices being achieved.
Source: www.freeofficesearch.co.uk
Economic recovery from a banking crisis-induced recession is notoriously weak. Aberdeen aside, the lack of a solid foundation to the recovery means that Scotland’s occupier markets are still performing at below average levels, while the development sector remains moribund. The investment market appears to have found some stability but trading is thin and these conditions will persist during 2011. These are the main findings in Ryden’s 68th Scottish Property Review, an authoritative report on the country’s commercial property sector.
Scotland’s economic recovery remains weak. Negative growth in late 2010 may, as in the wider UK, be offset by growth in early 2011 when data is published but the foundations of economic recovery are not yet solid.
The recent trend of sales and lettings of office space in Edinburgh and Glasgow running below average, but above average for office space in Aberdeen continues. Very limited new development afflicts all locations but has different implications for each city.
The lack of any speculative new-build development and dwindling supply of new Grade A office space in Glasgow and better quality Grade B property is reducing choice for local companies seeking to expand, and for potential inward investors. Continued lack of funding, allied to the time required for securing planning and construction, means there is little prospect of any new city centre development before late 2013/14.
Edinburgh has no new office developments scheduled for completion prior to 2012. Edinburgh Council’s HI development is due in 2013 and it is understood that Fordell Estates is preparing a planning application for quality offices at The National Trust for Scotland’s former premises, which could lead to space being available in 2013. Other development sites with planning consent have yet to commence.
The market for office space in Aberdeen has seen a surge in demand, due to the price of oil. Take-up figures in the last six months to March are up 45% to 355,209 sq ft and beyond this, a large number of available office suites are currently under offer. Within the city centre there is virtually no Grade A space available, with the exception of the final remaining suite in Union Plaza (pictured) and three floors within City Wharf.
There are fewer transactions being agreed due to a combination of less active investors and limited suitable stock coming to the market. Demand is expected to continue to be strong for investments which offer good quality and well-secured long term income. The lack of available stock in comparison to the number of investors in the market is leading to more competition for suitable assets and strong prices being achieved.
Source: www.freeofficesearch.co.uk
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