The wave of rising prime office rents which rolled out across the UK last year has resulted in the highest level of growth since 1990, according to Weatherall Green & Smith’s latest regional rent survey (Winter 1997/98).
The report puts Scotland at the vanguard of the rent rises, with Glasgow showing growth of 13% and Edinburgh 11%. Prime office rents in Edinburgh are now hitting up to £215.29 per sq m (£20 per sq ft) and Glasgow has registered £183 per sq m (£17 per sq ft).
According to Weatherall’s head of agency Greg Cooke, the 50 centres surveyed recorded an average rental increae of 8% over the last year, compared to 5% last year.
Weatherall predicts an increase in speculative development over the next two years on the back of rental growth. Once this new space comes on stream, rents will even out to balance the market and halt unrealistic and unsustainable rental growth.
EGi News 21/01/98
