Latest stats: Aberdeen’s industrial property market enjoys strong start to year as oil price soars

Aberdeen’s industrial property market enjoyed a strong start to the year as confidence began to return to the sector, new figures have revealed.

Analysis from property consultancy Knight Frank found that 235,344 square feet of industrial space was transacted during the first quarter of 2022 in the Granite City, up by 37 per cent on the same period a year earlier.

The average letting size increased by 47 per cent compared to January-March last year, rising from 7,399 sq ft to 10,851 sq ft. Marla Tube Fittings, which was advised by Knight Frank, took 30,248 sq ft at Site 1 Burnside Drive in Dyce, marking the largest letting of the quarter.

There have also been five deals of more than 20,000 sq ft so far in 2022, compared to just two by this time last year.

Scott Hogan, head of Scotland industrials and logistics at Knight Frank, said: “Confidence is returning to Aberdeen’s industrial market, after a surge in deals during the first few months of 2022.

“The higher oil price has seen increased activity in the North Sea and this has begun to filter into property requirements - there has been a noticeable uptick in not only the number of deals, but their average size too.

“While there is still an excess of supply, the level of demand continues to improve, highlighting the relative lack of good quality available accommodation.

“Unfortunately, demand is not yet strong enough to justify speculative development, as is the case in Scotland’s Central Belt.”