Edinburgh office market recovers as demand jumps

THe number of Edinburgh companies on the hunt for new offices has more than doubled in the past three months, according to research which points to a further recovery in the commercial property market.

Jones Lang LaSalle (JLL) said that, during the first quarter, there were 62 new office “requirements” in the city, compared with 25 in the final three months of 2012.

The property firm said that with deals typically taking between six and 12 months to complete, take-up of space during the second half of the year was likely to “reinforce” improving market conditions.

During Q1, occupier take-up totalled 158,000sq ft, comprising 40 deals and marking a 19 per cent increase on the amount of space transacted in the previous three months.

JLL said there had been a pick-up in the west of Edinburgh office market with the area recording its most active quarter in more than two years.

Ben Reed, director of office agency at JLL, said: “As an office destination, west Edinburgh has been standing still for some years. However, there are now some clear signs of life.”

The figures come after a report in February by fellow property adviser CBRE, which highlighted the strongest take-up of space in Edinburgh in eight years.

Demand in the capital was said to have been driven by occupiers from banking and finance, and consumer services and leisure sectors, accounting for 32 per cent and 24 per cent of all floorspace transacted, respectively.

Total 2012 take-up hit 773,059sq ft, the strongest year since 2004.

However, take-up in the second half was down 43 per cent over the first half – a period dominated by a large-scale deal with investment manager BlackRock.