Edinburgh
Take-up
TOTAL TAKE-UP IN QUARTER (SQ FT)
CHANGE ON LAST QUARTER
CHANGE ON 10 YR QUARTERLY AVG
TAKE-UP (SQ FT)
Source: Avison Young
Q4 take-up totalled 157,807 sq ft, 23% below the 10-year quarterly average. This brought annual take-up to 620,486, 15% below the 10-year average.
Out of town take-up was marginally stronger in Q4, 20% below average levels, whereas the city centre market was 24% below average.
Key deals included:
- Sainsburys’ 19,332 sq ft lease at 1 New Park Square;
- MFMac’s 16,435 sq ft lease at 9 Haymarket Square;
- Buro Happold’s 6,372 sq ft lease at New Clarendon House.
Over the past 12 months, the manufacturing and industry, financial services and TMT and creative sectors saw the highest levels of take-up, together accounting for 72% of the total.
Prime rents increased by 1.2% to £43.00 per sq ft, now up 7.5% on last year. We anticipate the prime rent increasing again to £45.00 per sq ft in the coming quarters.
NOTABLE DEALS
Source: Avison Young
PRIME RENT
Per sq ft
Quarterly change
Source: Avison Young
12 month change
Rent free months (10-year lease)
TAKE-UP BY SECTOR
Source: Avison Young
ANNUAL TAKE-UP (SQ FT)
Source: Avison Young
Availability
AVAILABILITY RATE
CHANGE ON LAST QUARTER
CHANGE ON LAST YEAR
AVAILABILITY (SQ FT)
Source: CoStar, Avison Young
Edinburgh's availability rate increased by 98 basis points to 6.9%, although the city remains the tightest of the Big Nine bar Liverpool Premium quality space is most undersupplied, with the grade A availability rate at 1.8%.
Development pipeline
DEVELOPMENT PIPELINE (SQ FT)
Source: Avison Young, PMA
A total of 418,690 sq ft new and refurbished space is due to complete during 2024, with a further 4,138 sq ft due in 2025. This includes New Clarendon House, 22 Charlotte Square and 30 Semple Street, as well as Baillie Gifford's 280,000 sq ft pre-let Haymarket office. In total, 75% of all new and refurbished space under construction is let or pre-let.
Investment
TOTAL INVESTMENT VOLUMES
CHANGE ON LAST QUARTER
CHANGE ON 10 YR QUARTERLY AVG
PRIME YIELD
INVESTMENT VOLUMES
Source: Real Capital Analytics, Avison Young
INSIGHT
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TOP DEALS
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