Demand for industrial units on rise

DEMAND for small industrial units in Edinburgh has increased since the turn of the year, but there remains an over-supply of larger premises, according to a new report.

Neil McAllister, a partner in the Edinburgh office of property firm Ryden, which has been named Scotland's busiest industrial agent by market analyst CoStar in the year to June 2010, said: "The number of deals completed since the early part of 2010 has been very encouraging, with the majority of activity within the small to medium-sized market. Rents range from 7-7.50 per square feet for prime property, with the standard incentive in the region of six to nine months for a five-year lease term. This is very similar to the peak of the market in 2006-7.

"However, demand for larger buildings remains limited and there continues to be an over-supply of large-scale secondary accommodation."