Supply shortage boosts office space occupancy levels
The Edinburgh city centre office market reached its highest level of occupancy since 2007 despite an annual decline of 18 per cent in take-up across the city’s central business district.
Within the centre, occupancy rates topped 89.2 per cent, according to a report by real estate company Colliers International. Prime rents in the city stand at £27 per square foot, having seen a fall of 2 per cent during 2011.
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Hide AdPatrick Hannay, head of offices with Colliers International in the city, said: “It is unlikely we will see a significant uplift in Edinburgh city core rents during the course of 2012”.
The report found that the overall amount of space let across the city remained subdued, with a slight pick up expected in 2012, as tenants look to take advantage of market conditions.
Glasgow saw a slight drop in demand for offices in 2011, with a strong element of “market churn” leading to a decline in occupation in the city centre.