Q1 surge in Edinburgh office requirements – Jones Lang LaSalle
New research from Jones Lang LaSalle shows a jump in office requirements for Edinburgh, with the number of businesses seeking office space in Edinburgh nearly trebling in Q1 2013 compared with the previous quarter.
In total there were 62 new Edinburgh office requirements during Q1, compared with 25 in Q4 2012, says JLL. “With deals normally taking between six and 12 months to complete, take-up during the second half of 2013 is predicted to reinforce improving market conditions for the city,” the firm adds.
Occupier take-up in Q1 2013 reached 158,000 sq ft across 40 deals, which was 19% above the 133,205 sq ft transacted in the previous quarter. JLL points out that West Edinburgh offices take-up accounts for nearly 30% of the total figure so far this year. Edinburgh city centre offices take-up accounted for just over half of the total.
Ben Reed, director of office agency at Jones Lang LaSalle, says West Edinburgh has been “standing still” as an office destination for some years, but there are now signs of new life in the market. “Edinburgh Park, in particular, is experiencing a significant increase in interest, having only transacted a total of 7,000 sq ft during 2012,” he adds.
He says that offices around South Gyle are becoming increasingly attractive to occupiers seeking good value, with rents at around £10-£15.50 per sq ft compared with £27 per sq ft in the city centre. “This location in particular is very well connected via public transport, including two new tram halts located on Edinburgh Park. Accessibility is an increasingly important factor when selecting new premises as more staff are using alternative forms of transport.”
