Cost of renting prime offices 'unlikely to rise' this year

THE cost of renting prime offices in Edinburgh is unlikely to rise this year, a leading property expert predicted today.

Peter I'Anson, offices partner at property firm Ryden, said that rent rises are unlikely to happen until 2012 - although he forecast that the market could start to pick up this year.

Mr I'Anson said: "Through 2011, rents will remain the same and rent-free periods toward the end of 2011 may reduce slightly.

"Grade A rents currently sit around 27 per square foot, and we are unlikely to see any growth before 2012."

He said that Edinburgh's office market did "better than expected" in 2010, with big deals involving Tesco and Baillie Gifford helping an otherwise "patchy" performance.

He said a similar trend will continue this year, although there are few "substantial requirements" in the office market. But upcoming lease expiries may mean companies start searching for new space.