'Encouraging' start to the year for Edinburgh's commercial property market



Edinburgh ’s commercial property market has seen an increase in office space transactions across during the first quarter, according to analysis by Knight Frank.

The commercial property consultancy said that around 90,000 sq ft of office space was transacted this year, which was an increase from the first quarter of last year.

The number of office space transactions in the first quarter of 2021 was up by 21,085 sq ft compared with 2020, at 68,915 sq ft.

However, the number of transactions for commercial property was 9,000 sq ft less than in the last quarter of 2020, at around 99,000 sq ft.

Motorola took up 10,844 sq ft office space at the Caledonian Exchange and was among the deals concluded between January and March 2021.

Others included Trustpilot taking 9,500 sq ft at 28 St Andrew Square and law firm MacRoberts securing 6,500 sq ft at 10 George Street.

Demand for office space in Edinburgh has remained stable throughout the pandemic, with around 500,000 sq ft of requirements still on the market.

The development pipeline has continued to be restricted though, with 281,000 sq ft of new office space still under construction.

Last year, Edinburgh saw 490,585 sq ft of take-up and a new headline rent of £37.00 per sq ft was set in the city, despite the economic uncertainty caused by the pandemic.

Simon Capaldi, office agency partner at Knight Frank Edinburgh, said: “While much of the economy remained shut down, it has, nevertheless, largely been an encouraging start to 2021 for Edinburgh office take-up.

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“Some of the larger deals this quarter were held up due to ongoing uncertainty, but their conclusion is indicative of pent-up demand and, with many businesses beginning to re-open and schools returning, there is an air of positivity.”

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