Forecasts for the commercial property markets in Glasgow and Edinburgh are looking rosy, according to a new report by Deloitte Real Estate.
With office space being occupied very quickly in the two cities in 2012, the report suggests it may even outperform the entire national average across the UK. Edinburgh, in particular, saw its lettings perform the best in over four years, with rental rates remaining very positive. Glasgow also saw investment increasing in 2012, with £152 million worth of deals being exchanged in the city; much of this being produced by the sale of One George Square in the centre.
Alasdair Ramsay, head of Deloitte Real Estate in Scotland, said: “Although there are limitations to the extent of market recovery we should expect across Scotland this year, it is the most positive picture we have been able to paint for the region in some time. With positive rental growth and the embers of recovery in Glasgow's development market, we could well be looking at an even more positive picture come this time next year."
Mr Ramsay’s reference to Glasgow points to the vast new developments which are occurring in the city at the moment. With high demand for Grade A office space, two large schemes have already began in the city centre. This will offer a ray of light for potential investors.
Industrial take-up also was positive in the past year, with 100,000 sq ft of units being taken off the market. This was four times higher than the 2011 total. Although, it is important to note that rental rates and incentives have tightened in recent weeks.
Analysts hope that these positive trends will continue for the rest of 2013, whilst a keen focus will be placed on other nearby cities such as Aberdeen so that they can follow suit.