The Edinburgh office market has seen more occupiers regear their existing workspaces than move, according to Knight Frank.
The consultancy’s research into the city’s office take-up between April and June this year found that renewed leases amounted to 135,013 sq ft of activity, while occupiers agreeing to take new space accounted for 113,000 sq ft.
Chrissie Clancy, surveyor at Knight Frank, said: “The strong theme that has emerged over the course of the past three months has been occupiers deciding to stay put and regear at their current premises.
“Part of the reason behind this is the lack of good-quality stock coming through the development pipeline in Edinburgh. But it is also partially because of uncertainty over size requirements, with working patterns changing, and the cap-ex costs for fit-outs in the current environment.”
Overall vacancy rates across the Scottish capital remained at around 11%, but new and second-hand grade-A availability stood at less than 0.4% and 6.7%, respectively.
Edinburgh office take-up in Q2 last year totalled 148,132 sq ft.
Knight Frank said occupiers in the city are hunting for let-ready, fitted offices, providing quick access and lower requirements for capital expenditure on entry.
Clancy added: “Second-hand space and cat B fit-outs – providing occupiers with a functional office from day one – are growing in popularity. This has required landlords to be flexible, as well as a willing to invest in more upfront work to secure occupiers.”
Among the notable Edinburgh deals in Q2 was a prelet at 30 Semple Street, where Red Rock Power has committed to occupy the entire fourth floor.
Check out lettings in Edinburgh >>
Photo © Paul Brown/Shutterstock
Send feedback to Evelina Grecenko
Follow Estates Gazette
