Edinburgh Snapshot, July 2012

Report Summary:

Grade A absorption remains strong in Edinburgh rising to 238,897 sq ft in H1 2012, the highest level since H2 2009. Blackrock signed for 70,000 sq ft at Exchange Place and Brewin Dolphin took a pre-let on 48,000 sq ft at the Atria scheme. This enabled half yearly Grade A take-up to reach 224,768 sq ft, the highest level for over six years. In addition, Skyscanner signed for 27,000 sq ft at Quartermile One along with Investec, who took for 10,627 sq ft.

In contrast to its neighbour Glasgow, Edinburgh has continued to see steady declines in availability going into 2012. Overall city core availability has fallen by 14% year on year but the fall in Grade A availability far exceeds that fi gure, down by 52%. Grade A availability has reduced in each of the last four half year periods by a total of 507,000 sq ft while overall stock levels have remained static.

Headline rents stand at £27.50 psf as they have for the past two years. While Brewin Dolphin is rumoured to have paid over £30 psf for its pre-let at Atria, this will have included an extensive incentive package

About the Author:

The Colliers International Research team provide expert advice and a wide range of specialist services to clients across the UK, including a property market forecasting capability.

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