16. August 2012 
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Scottish cities office space in high demand
Edinburgh and Glasgow were responsible for 42% of all office take-up in the UK regional markets in Q2 2012, according to figures released GVA.
GVA’s quarterly Big Nine review of the regional office occupier markets shows that Edinburgh had the biggest take-up of all cities with 250,000 sq ft. This includes an 80,000 sq ft deal for BlackRock at Exchange Place 1 and a 27,122 sq ft letting to Skyscanner at Quartermile One, the two biggest deals recorded in Q2.
Even without the BlackRock and Skyscanner deals Edinburgh saw 142,878 sq ft of city centre take-up, putting it ahead of second placed Manchester, which had 132,584 sq ft.
Glasgow had the third highest take-up with 118,870 sq ft of office space, outperforming cities such as Birmingham, Liverpool, Newcastle and Cardiff. A number of leading solicitors are actively looking for space in Glasgow, with several large deals expected in Q3.
These figures emphasise the concern over the supply of quality stock in both cities, particularly Edinburgh, which is expected to run out of Grade A office space within the next 18-24 months, according to figures released last month by GVA.
Severe restrictions on development finance for new build, alongside a lack of private sector confidence, means that supply is beginning to dwindle in the Capital. Rapidly diminishing stock, together with transactions currently under offer in the market, will soon lead to a lack of suitable office accommodation to meet anticipated on-going occupier demand.
Toby Withall, National Markets Director for GVA Scotland said: “These figures highlight the potential problems that will affect Edinburgh within the next couple of years. What we are witnessing is an increasing demand for space but as our report showed last month there is a significant shortfall of quality office space available in the capital.
“If occupiers whose leases are due to expire in 2013-15 decide, as expected, to relocate this will only intensify the situation further.”
GVA’s quarterly Big Nine review of the regional office occupier markets shows that Edinburgh had the biggest take-up of all cities with 250,000 sq ft. This includes an 80,000 sq ft deal for BlackRock at Exchange Place 1 and a 27,122 sq ft letting to Skyscanner at Quartermile One, the two biggest deals recorded in Q2.
Even without the BlackRock and Skyscanner deals Edinburgh saw 142,878 sq ft of city centre take-up, putting it ahead of second placed Manchester, which had 132,584 sq ft.
Glasgow had the third highest take-up with 118,870 sq ft of office space, outperforming cities such as Birmingham, Liverpool, Newcastle and Cardiff. A number of leading solicitors are actively looking for space in Glasgow, with several large deals expected in Q3.
These figures emphasise the concern over the supply of quality stock in both cities, particularly Edinburgh, which is expected to run out of Grade A office space within the next 18-24 months, according to figures released last month by GVA.
Severe restrictions on development finance for new build, alongside a lack of private sector confidence, means that supply is beginning to dwindle in the Capital. Rapidly diminishing stock, together with transactions currently under offer in the market, will soon lead to a lack of suitable office accommodation to meet anticipated on-going occupier demand.
Toby Withall, National Markets Director for GVA Scotland said: “These figures highlight the potential problems that will affect Edinburgh within the next couple of years. What we are witnessing is an increasing demand for space but as our report showed last month there is a significant shortfall of quality office space available in the capital.
“If occupiers whose leases are due to expire in 2013-15 decide, as expected, to relocate this will only intensify the situation further.”
