Edinburgh is the latest UK city to face a shortage of office space, as a report from the property arm of BNP Paribas points toward a “crisis” as the supply of new office space in the city becomes squeezed.
Fuelled by a lack of investment in future office developments, which is reported to have fallen by 38% in the opening 6 months of 2012, the report suggests that Edinburgh is a victim of the reluctance in investors toward putting their capital into regional offices.
Fund manager Highcross is to market office developments in Edinburgh for approximately £50 million – a move which may help the current commercial property crisis in the city.
Waterloo Place features a listed business building comprising 213,000 sq ft of office space on the eastern end of the iconic Princes Street.
BNP Paribas has estimated that the Edinburgh office crisis is going to continue to worsen as – despite better projected take-up – demand still far outstrips supply of Grade A space in the popular city.
According to BMP Paribas, take-up in Edinburgh was 46% higher in the first half of 2012 than it was in the first half of 2011. However, at the same time, investment in office space fell 38% to £30.7 million.
Scotland continues to attract business as the office space in Edinburgh and Glasgow is more in demand than ever, according to statistics.
Overviewing office space take-up across the UK, Edinburgh and Glasgow together made up a total 42% of all offices taken in the second quarter of 2012 – as indicated in a report released by GVA.
The amount of office space secured in Edinburgh has continued to grow in the opening 6 months of 2012, prompting concerns that the City could soon run short of Grade A commercial space.
Published by Jones Lang LaSalle, a report on the office market in the Scottish Capital states that uptake has continued to accelerated since the beginning of 2012 – with the 244,000 sq. ft. taken in the second quarter of the year representing the speediest uptake in the City since 2007.
High-quality office space appears to be in short supply in Edinburgh, with a leading commercial property agent stating that availability could run-out by the beginning of 2014.
With demand expected to rise during the next 18 months, property experts GVA believe that the lack of development taking place in the Edinburgh needs to be addressed urgently – with a lack of high-quality office space having the potential to restrict growth in the Scottish Capital.
Experts suggest that Edinburgh is at threat of losing all available Grade A office space by 2014.
Property consultants GVA posit that demand will outstrip supply within 18 months if current trends continue. Significant restrictions on new builds and the impact of the recession have both been partially to blame.
A World War 2 hand grenade halted goings-on in Edinburgh last week as a controlled explosion had to be carried out to remove the object.
Reports from business centre, 23 Melville Street, suggest that workers up and down the street were asked to remain in their offices with the windows open and brace themselves for impact.
Online travel search engine, Skyscanner, has confirmed that it intends to merge three existing offices into one key HQ located in Quartermile, Edinburgh.
With a staff approaching 150 people strong and hopes to double this number, Skyscanner intends to consolidate its Edinburgh presence into a 28,000 square foot office based over 2 storeys at Quartermile One.
A new report from Savills suggests headline office space rents in Edinburgh could rise dramatically towards the end of 2012.
The real estate advisor says a lack of supply and increased demand could force rents in the city back to their peak.
Edinburgh office space rents could return to their peak at the end of 2012, according to a new report by real estate advisor Savills.
The international firm suggests that an increase in demand and a lack of supply could force upward pressure on headline rents in the city later this year. Currently standing at £27.50 per sq ft, office space rents are expected to rise steadily to £30 per sq ft in the next 12 months. (more…)