Scotland enjoys growth

CBRE’s H1 2015 report on Scottish office market trends concludes that take-up is above average in Edinburgh, Glasgow and Aberdeen.

In Glasgow, CBRE point to active requirements in excess of 800,000 sq ft, with local agents calculating that demand remains at an all-time high, despite a slightly subdued first half of 2015, with just under 225,000 sq ft of office deals, about 75% of the long term half year average.

The latest large transaction was the 27,522 sq ft let to Teleperformance at Cuprum, along with 10,000 sq ft let to Arup at 1 West Regent Street.

Interest in new schemes at 1 West Regent Street (where Metropolis has reported on the activities of Real Radio) and 110 Queen Street (where there is activity by Deloitte, amongst other) is growing, while St. Vincent Plaza, following its completion, is expected to follow suit with a number of interested potential occupiers. Metropolis is monitoring demand from companies such as Kier, AXA and Jacobs.

In Edinburgh, nearly 404,000 sq ft was transacted in the first half of 2015, which CBRE point out is just above the recent five year H1 average. Capita took the entire building (26,900 sq ft) at 145 Morrison Street and the Law Society of Scotland signed for 19,100 sq ft at Atria One.

Demand remains strong in Edinburgh, with requirements from companies such as KPMG, Amazon, Edinburgh University and Brodies. Metropolis is speaking to over 50 Edinburgh companies about current move plans.

Moorfield is speculatively developing Quartermile 4 and has secured a pre-let to FanDuel. FanDuel concluded the deal six weeks after agreeing terms.

The next large office scheme completion in Edinburgh is The Haymarket due for late 2017.

In Aberdeen, three large pre-let deals were struck during the first half of 2015: Anderson Anderson & Brown and LR Senergy committed to 45,000 sq ft and 100,000 sq ft respectively at Prime Four Business Park while KCA Deutag acquired 70,000 sq ft at City South. Take up in the first half of 2015 was 290,000 sq ft, which was a fall from the 800,000 in the second half of 2014.

Agents report that he majority of letting activity and requirements are in the sub 10,000 sq ft size bracket. Metropolis is tracking demand from companies such as Raggnar Power and Burnett & Reid.

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