Office space shortage looms in Edinburgh

OFFICE space availability across Edinburgh is expected to hit its lowest level in more than a decade this year amid continued strong demand for properties.

By GARETH MACKIE

Published 11th Feb 2015, 00:00 BST

Edinburgh: Office space shortage looms. Picture: Jane Barlow

With take-up in the city rising to a ten-year high in 2014, property consultant CBRE also said the amount of “ready to occupy” offices fell for the third year in a row, with some 439,500 square feet of newly completed space available on the market.

The firm said: “This was down 60 per cent since the supply peak of 2009. With levels expected to fall further in 2015, overall supply in the city is set to become the lowest since 2004.”

CBRE also said that supply levels have continued to fall in Glasgow, as concerns that the independence referendum would affect occupier confidence provided “unfounded” and take-up approached 672,000sq ft.

Senior director Audrey Dobson said last year’s Commonwealth Games “will only assist in attracting inward investment in 2015”.

Although the fall in oil prices could affect activity in Aberdeen, CBRE said two speculative projects in the city centre – the 80,000sq ft Point and 74,000sq ft Capitol – are due for completion this year.