City sees rise in take-up of office space

TAKE-UP of office space in the Capital has surged ahead of this year, property experts said today.

DTZ said in its latest report that 114,000 square feet of space was secured in the third quarter of 2010 - taking the year-to-date figure ahead of 2009.

Mark Jones, head of DTZ's office agency department in Edinburgh, said: "Take-up in the city centre market during 2010 has already exceeded the 2009 annual total.

"It is noticeable that the best quality supply in the market continues to attract demand, as demonstrated by the recent letting at IVG's Cube to Baillie Gifford.

"Edinburgh has demonstrated that it has a robust city centre office market, and demand continues to originate from a wide variety of sectors.

"The financial services sector is noticeably active again. Against this backdrop, availability has reduced overall, albeit that Grade 'B' supply remains over-provided.

"Overall, the market continues to be challenging, but the long-term outlook suggests a shortage of Grade 'A' stock and gradual prime rental growth by 2012/2013."