Exchange owners celebrate year's biggest property deal

Published on Tuesday 22 December 2009 09:23

A FLAGSHIP new office development has secured the biggest deal of the year in Edinburgh's commercial property market.

Global energy research and consultancy firm Wood Mackenzie is to move into the new Exchange Place office development behind the headquarters of Scottish Widows.

The firm is to take four floors of one of the three offices on the Fountainbridge site.

It is a major boost for the Capital's biggest office development in five years, which is now more than a third full eight months after it opened.

Property agents say that the 35 per cent occupancy rate represents a strong performance.

Cameron Stott, a director of property firm Jones Lang LaSalle, said interest had been strong since marketing started in a better economic climate more than two years ago.

"We had a difficult time at one stage but to have secured these three deals is fantastic in the current market," he said.

Wood Mackenzie has signed a 17-year lease for 38,200 square feet of space in Exchange Place 2.

It will move from its base on Queen Street next summer. It refused to disclose the rental rate agreed but it is understood it is close to the rates marketed by agents, which start at 28 per sq ft.

Actuary firm Hymans Robertson has already signed up for 13,000sq ft at Exchange Place, while accountants Scott Moncrieff occupies 18,000sq ft.

Exchange Place is the biggest new office development in Edinburgh since Waverley Gate, which remains almost empty five years after a 100 million revamp.

Darryl Tidd, investment director at Scottish Widows Investment Partnership, which owns Exchange Place, said: "SWIP is delighted that Wood Mackenzie has chosen Exchange Place as its Edinburgh base.

"There is now 35 per cent of Exchange Place occupied – a great achievement during any market, but particularly significant in the environment today."

Councillor Tom Buchanan, the city's economic development leader, said:

"This provides a real boost to the regeneration of Foutainbridge and a timely reminder that Edinburgh continues to be a great place to do business."

Despite the success of Exchange Place, Mr Stott said that, across the city, the office market had been slow this year. He said: "2009 will be down significantly on 2008, which was down on 2007. It has been a very tough year.

"2010 is likely to be another tough year but we are in a better place than we were in December 2008. There are a few positive signs out there and there is the potential for a few major deals."