Edinburgh

Total office take-up for 2020 was relatively robust following Baillie Gifford’s acquisition of 280,000 sq ft at Haymarket during Q3, although elsewhere, activity has been unsurprisingly scarce. Take-up amounted to 473,000 sq ft in the city centre and 90,000 sq ft out-of-town,17% and 58% below ten-year averages.

The number and size of deals in the city centre picked up in Q4 and was a significant improvement on the previous two quarters. The largest deal was 20,100 sq ft to Arup Group at 10 George Street and there were also six deals between 5,000 sq ft and 10,000 sq ft – the majority of which involved ‘best in class’ space as occupiers focus on upscaling the quality of their offices. This included transactions to Parsley Box at Quartermile 3, NCM Finance at 7 Castle Street and Crown Estates Scotland at Quartermile 2.

There are a handful of other grade A deals that did not cross the line so we should see a decent level of take-up during Q1, though the positive momentum that was building towards Christmas has fallen back a little as lockdown restrictions have increased.

With a number of occupiers delaying their requirements for the time being, there is likely to be an element of pent-up demand later in the year. In the short term, the development pipeline remains relatively limited although we expect to see the supply of second-hand space increase, partially as a result of the Baillie Gifford deal, as they look to come out of other occupied properties.

In the out-of-town market, Mapeley sold the 90,000 sq ft Grayfield House in Bankhead for redevelopment from offices to urban logistics: 165,000 sq ft of industrial and warehousing space is proposed across 20 units ranging from 3,400 sq ft to 25,000 sq ft.

TAKE UP Q4

City Centre

95,616 sq ft

Out of Town

12,224 sq ft

HEADLINE RENT

City Centre

£37 per sq ft

Out of Town

£22.50 per sq ft

UNDER CONSTRUCTION

Total

571,913 sq ft

Prelet

61%

PRIME YIELD

Q4 2020

4.75%

TOP FIVE DEALS Q4

KEY SECTOR ACTIVITY 2020

Insurance

71%

Engineering consultancy

8%

Utilities

7%


TAKE-UP

This report has been prepared by Avison Young for general information purposes only. Whilst Avison Young endeavours to ensure that the information in this report is correct it does not warrant completeness or accuracy. You should not rely on it without seeking professional advice. Avison Young assumes no responsibility for errors or omissions in this publication or other documents which are referenced by or linked to this report. To the maximum extent permitted by law and without limitation Avison Young excludes all representations, warranties and conditions relating to this report and the use of this report. All intellectual property rights are reserved and prior written permission is required from Avison Young to reproduce material contained in this report.