Edinburgh law firm among trio of lettings in major coup for new office development

A trio of letting deals has been announced for a major Edinburgh office development, providing a timely lift for the capital’s property market.

Legal firm Anderson Strathern has taken more than 21,400 square feet across the ground and first floors of Capital Square on a 15-year lease, representing the largest new build Grade A office transaction in the city this year. The firm will relocate its staff from an office on Rutland Court to Capital Square following a period of fitting out.

International audit, tax and advisory firm Mazars has leased 8,247 sq ft on the second floor on a ten-year lease, moving staff from an office in Apex 2 on Haymarket. Meanwhile, following its acquisition of civil engineering firm Peter Brett Associates, Stantec is relocating staff based across two Edinburgh offices - in Eastfield House and Randolph House - into Capital Square. The international company has taken a suite on the third floor extending to 9,241 sq ft and with its fit-out under way, the business hopes to be in occupation before the end of the year.

The three new lettings take the development to almost 90 per cent occupancy with only 9,421 sq ft remaining available and a further suite under offer.

Awarded the best commercial workplace in Scotland in 2022 by the British Council for Offices, the newly completed development is located in the heart of Edinburgh's Exchange District. Picture shows lower floors of the building. Picture: McAteer Photograph

Awarded the best commercial workplace in Scotland in 2022 by the British Council for Offices, the newly completed development is located in the heart of the capital’s Exchange District. It is equipped with features such as an intelligent LED lighting system, electric car charging points and solar panels, and also has a landscaped courtyard, outdoor seating and a private garden area.

Acting on behalf of the landlords BAM and Federated Hermes, property advisors CBRE and JLL are the letting agents at Capital Square. As well as developing the office scheme, BAM designed and constructed it and now provides facilities management services for the building.

Mark Broderick from BAM said: “Our new occupiers are among the best businesses in their fields and understandably they all had high standards when searching for new offices in the city.”

Stewart Taylor, senior director at CBRE Scotland, said: “Securing these deals provides clear evidence that occupiers want best-in-class accommodation that resonates with their staff whilst helping to achieve their environmental goals. With the shortage of accommodation of such high quality, we hope to announce a further letting in the building shortly.”

Earlier this month, research suggested that Scotland’s commercial property investment market is likely to see continued volatility after a slump in deal activity over the summer. After a strong post-Covid bounce back, industry observers are predicting a challenging winter, with caution being the watchword in the short to medium term.

Releasing its latest quarterly review, Lismore Real Estate Advisors said the momentum from the first half of the year had not carried through, with the third quarter seeing some £339 million of transactions traded, compared with £612m in the previous quarter.

Lismore director Richard Mackie said: “Signs of a general market slowdown were starting to show pre-summer. Well documented macroeconomic challenges meant investors became cautious and volumes slowed over the summer months.”