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July 18, 2012

Demand in Edinburgh accelerates in previous quarter

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

While news that Edinburgh’s office space market experienced accelerated demand last quarter would normally be greeted with joy, concerns have begun to arise that the current supply in the northern capital will soon be exhausted.

According to research conducted by commercial premises experts, Jones Lang LaSalle, the more than 244,000 sq ft taken up in Edinburgh during 2012’s second quarter is the fastest growth the capital has experienced since 2007. Not only was this last quarter’s take up was approximately 20 per cent more than Q1 2012’s figures, Jones Lang LaSalle added that 2012’s second quarter left last year’s 150,000 square foot take up positively in the dust.

A series of large scale office space rental deals in Edinburgh city centre drove take up figures, with the 80,000 square foot letting of Exchange Place to Blackrock and Quartermile One welcoming both Investec and Skyscanner as well. However, the result of such heightened demand could lead to a complete exhaustion of all of Edinburgh’s Grade A offices in 18 short months, as the number of construction projects currently in the pipeline cannot possible keep pace unless demand drops off.

The city has approximately 400,000 square feet of new office space available at the moment, according to Jones Lang LaSalle’s calculations. However, 25 per cent of that has already been spoken for or is currently being negotiated over.

Ben Reed, JLL’s director of office agency for Edinburgh, remarked that the commercial office space experts have been sounding the alarm for quite some time in regards to the impending shortage.

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