New figures suggest that the business side of the capital is thriving just as much as its property market
In 2018, office market movement saw an increase of 28% compared to the same quarter in 2017. This is according to figures from CBRE, which report that the take-up of office space in Edinburgh for the third quarter of 2018 was approximately 272,000 sq ft.
This data comes soon after news that Edinburgh has the fastest growing property sales in the UK, that it is the top city in the UK for economic growth, and that it is leading the way for sustainability. The Scottish capital also made the top ten cities in the most recent Good Growth for Cities Index.
These factors, combined with the latest research from CBRE, have led to a thriving yet competitive market, with both commercial and residential buyers having to act quickly and decisively in order to get their hands on some of the high-quality space Edinburgh has to offer.
Looking closer at the CBRE results, they reveal that city-wide Grade A take-up in the third quarter of 2018 made up more than half of the total Grade A take-up for the entire year to date, accounting for 126,407 sq ft out of a total of 252,000 sq ft.
Despite being an impressive result, they do show a decline on 2017’s Grade A take-up. However, this is likely due to the competitive aspect of Edinburgh’s office space; there is simply less Grade A space left to go around. CBRE was involved in 96,125 sq ft of Edinburgh office transactions in 2018, equating to around 35%.
Some of the standout deals made in the capital include the pre-letting of over 55% of Capital Square on Morrisons Street to legal firms Pinsent Masons and Brodies LLP, as well as 18,887 sq ft of office suites at One Lochrin Square being acquired by existing occupier Spaces and CTRIP.
Beverly Mortimer, from the CBRE Advisory and Transaction Services team, spoke about the meaning behind these results.
Mortimer used the example of the “pre-lets at Capital Square” to show how the city’s office market has thrived, as these lets “formed a large part of the total take-up” for the third quarter. Mortimer also said the pre-lets are an example of “the tightening supply in the Edinburgh market as the building will not complete until May 2020.”
Mortimer also commented on the need to act quickly in Edinburgh’s competitive market, saying:
“Tenants with requirements are now, in some instances, having to search for office space up to 18 months in advance of lease events to ensure they secure high quality space. In general the professional services sector take-up in 2018 has been significantly higher than that of 2017 which has in the past couple of years taken a back seat to the creative and technology sectors.”
So what does this mean for anyone looking to live and work in the Scottish capital? Simply put, it means that you couldn’t pick a better place to do it, but you need to act fast. Start planning your move today to make 2019 the year you find your dream home and career in Edinburgh.
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