Industrial property continues to build recovery in Aberdeen

Aberdeen’s industrial property sector is continuing its recovery in the wake of the 2014 oil price crash, although total take-up dropped in the first half, according to property consultancy CBRE.

CBRE associate director Iain Landsman expects the Aberdeen market will perform 'in line with 2018, if not exceed it'. Picture: contributed

Industrial property take-up in the city fell by 23 per cent year on year to just under 255,000 square feet in the six months to June.

However, the volume of transactions was particularly high, with 46 deals completed since January.

This is the same number completed during the whole of 2016, and the equivalent of 81 per cent of the five-year average for total deals transacted in a 12-month period. CBRE highlighted the continued recovery as the uplift from the Granite City’s energy ­sector filters through to the property market.

Smaller deals continued to dominate, with lettings below 10,000 sq ft accounting for 57 per cent of all transactions in the first half.

This reflects the “increasing confidence” in the Aberdeen economy, with smaller companies now comfortable making the commitment to take new premises, according to the property consultant.

CBRE associate director Iain Landsman said: “The outlook for the remainder of the year is positive, with over 170,000 sq ft of transactions under offer, plus there are a number of active requirements in the market. We envisage that 2019 will be in line with 2018, if not exceed it.”