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Edinburgh, 14 October 2011 - Occupier take up in Edinburgh during Q3 2011 was consistent with the previous quarter, according to research by Jones Lang LaSalle, but supply levels reduced for the seventh quarter in a row.
Occupier take up in Q3 totals approximately 152,000 sq ft which was down 12% on the same period last year. Total take up for the year to date now amounts to 492,000 sq ft, compared to 561,850 sq ft for the same period in 2010. The market remains tenant-led and city centre offices, easily accessible by public transport, continue to capture the majority of the demand, particularly where they can provide competitively priced modern open plan space. An example of such accommodation is Tanfield, located at the bottom of Dundas Street which, having let 17,354 sq ft to FNZ last quarter, is now in talks with Avaloq IT, looking to establish up to 500 new jobs in Edinburgh.
Other significant lettings included Mercer’s relocation from Hanover Street to Quartermile One due to expansion and Lyons Davidson acquiring the freehold interest at Enterprise House, Earl Grey Street. Finance, Technology and Professional Services remain the most active sectors with lease events continuing to drive most of the requirements.
Ben Reed Director at Jones Lang LaSalle commented: “Supply levels are continuing to diminish with only Site HI, Morrison Street under construction and due to complete in Q1 2013. Due to the steady decline in Grade A city centre space a number of larger corporates with lease expiries or breaks from 2013 onwards are actively starting to review their options which in time may lead to some pre letting activity.
“In West Edinburgh it has been a different story with a noticeable fall in the number of viewings which has had an adverse impact on overall take up. Landlords and developers are now reacting to dwindling enquiry levels by reducing their quoting rents to offer attractive discounts to the city centre.
In Edinburgh Park, a major HQ opportunity came to the market last quarter. 3 Lochside Avenue is the largest available office outwith the city centre providing up to 84,789 sq ft.”
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