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July 4, 2012

Edinburgh Grade A office supply dangerously low?

Filed under: News — Tags: , , , — Office Space @ 6:00 am

One new report from commercial premises specialists GVA has revealed that it could be as little as 18 months before the Grade A office accommodation in Edinburgh is exhausted.

Demand in the Scottish capital’s city centre seems to be following in the footsteps of London’s market, as it will soon outstrip the remaining supply of office space, GVA said, adding that a large part of the problem is both a lack of confidence in the private sector and severely restricted finance options for new construction in Edinburgh.┬áThere is an ‘urgent’ need for grade A office development in the city, argued the commercial office space specialists in their report, especially in light of the highly energetic nature of the grade A office market over the last year in Edinburgh.

Stock is continuing to diminish – and rapidly – GVA warned, and with no evidence existing that demand will recede any time soon, the property consultants fear that the well will soon run dry in regards for appropriate grade A space.

AGV Scotland’s national markets director, Toby Whithall, commented on the new report, remarking that many make the common mistake in thinking that the banking crisis and resultant economic downturn led to financial service companies abandoning the city in droves as their costs ballooned, the truth of the matter is that the lion’s share of the banking sector doing business in Edinburgh remained exactly where they were, which means that there is very little high-quality space in the city that has remained unoccupied. Moreover, new construction remains very scarce, with only two sites in the pipeline to be completed in the immediate future, which could lead to upward pressure being exerted on office space rental prices in Edinburgh as supply dwindles while demand continues to rise.

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