Aberdeen office market on track to double up in 2022 despite summer slowdown

Aberdeen’s office market continues to bounce back from its pandemic lows despite take-up easing in the third quarter, new figures have indicated.

Property consultancy Knight Frank said that 47,926 square feet of office space was transacted in the Granite City between July and September. Combined with the 195,905 sq ft and 60,521 sq ft during the first two quarters, respectively, take-up for 2022 so far has topped 304,352 sq ft. The largest deal of the third quarter was Dolphin Drilling securing 9,000 sq ft of office space at D2 Business Park in Dyce, as the continuing high price of oil boosted offshore activity.

With several transactions already underway and likely to conclude in the coming weeks, property experts predict that Aberdeen will breach 400,000 sq ft of office deals by the end of the year - a significant increase on the 197,000 sq ft recorded during 2021, when the market was impacted severely by the economic fallout from the pandemic.

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Matthew Park, partner at Knight Frank Aberdeen, said: “Although take-up slowed, there were 19 deals concluded in the third quarter - office activity so far in 2022 demonstrates that Aberdeen is bouncing back from the effects of the Covid-19 pandemic. There are enough transactions in the pipeline to believe that we can surpass 400,000 sq ft for the year, which would be more than double 2021’s total. The sustained high oil price and the prospect of more than 100 new North Sea licences being awarded, to boost domestic oil and gas production, in the next licensing round is trickling through into property deals.”

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