Commercial property is bearing up in Edinburgh

Published on Wednesday 16 July 2008 21:18

COMMERCIAL lets in Edinburgh have proved resilient in the face of the market downturn, with the take-up of rented offices up in the second quarter of this year.

Figures published yesterday for occupier take-up of offices show an increase in the three months to June.

But property experts last night warned that the credit crunch will bite in the third quarter.

According to office agency Jones Lang Lasalle, office take-up in Edinburgh rose in the second quarter of the 2008 and was "in line" with the same quarter last year when office lets were buoyant.

Total occupier take-up was around 200,000sq ft, up from 184,000sq ft in the first quarter.

The biggest deal in the second quarter was law firm Morton Fraser's pre-letting of 37,000sq ft at Quartermile.

Cameron Stott, director of Jones Lang LaSalle, said: "I'm not getting carried away saying look at this fantastic uplift, because, quite honestly, I can see Q3 being quite a quiet quarter. The office market is continuing quite robustly even though the dark clouds of the economy are hanging over us."

Stott said he was "cautiously optimistic" about the prospects for the remainder of the year, where trends have indicated the fourth quarter tends to be the busiest of the year.

"Quarter four tends to be the most active where we would see things pick up again," he said.

Meanwhile, Land Securities yesterday reported a 0.2 per cent fall in the value of property sold and a slower lettings market. Sales in the first quarter of the year were 67.2 million, down 0.2 per cent below valuation. In London, property sales were 5 per cent below market valuation.

In Scotland, letting has yet to slow down. According to the group, The Elements, their 130m, 375,000sq ft shopping centre in Livingston was 76 per cent let, up from 70 per cent in May. Retailers signed up so far include Marks & Spencer, Debenhams, H&M, Swarovski, Orange, 3, River Island and Beaverbrooks.