Aberdeen’s office market has bounced back from a subdued start to the year as more businesses signal their commitment to the city, according to the latest figures from Knight Frank.
Knight Frank recorded 141,789 sq ft of office take-up during Q3 this year, beating the 116,642 sq ft leased during H1.
The figure has nearly tripled on Q3 2022, when just 47,926 sq ft transacted.
The majority of the deals agreed in the quarter were largely driven by companies in the energy and utilities market, with their commitment to the Granite City underpinned by sustained higher oil price.
These included well services company Odfjell Technology, which signed for 19,164 sq ft of space at Prime Four business park, and energy infrastructure specialist Kellas Midstream, which leased 10,149 sq ft at The Capitol on Union Street.
The city’s West End continues to be a favourable location and has so far seen the most activity in 2023, accounting for 43% of office deals.
Knight Frank said the area’s popularity was due in part to a range of recent refurbishment and investment initiatives, bringing traditional listed buildings in line with modern occupiers’ requirements.
New features include revamped common areas as well as improved energy efficiency measures.
Matthew Park, partner at Knight Frank Aberdeen, said: “It is encouraging to see an uptick in office activity following on from a reasonably quiet start to the year. With a flurry of deals completed this quarter, we are cautiously optimistic that the market is back on track for a strong end to 2023.
“The sustained high oil price is undoubtedly giving the city a boost, with more companies committing to high-quality office space across Aberdeen.”
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