Take-up of office space in Edinburgh fell by 0.9% to 649,000 sq ft in 2023, according to the latest data from Savills.
The annual take-up figure was 0.5% higher than the five-year average for the city, with Grade A space accounting for 56% of activity.
Savills said there is currently 700,000 sq ft of live requirements seeking premium office space in the city, however, there are just three prime buildings – 24 St Andrew Square, 30 Semple Street and Clarendon House – currently under construction with less than 120,000 sq ft of availability, taking into account space that is under offer.
With rents increasing 5% to £45/sq ft, Savills said this should provide confidence to developers considering future speculative development.
Mike Irvine, director in the office agency team in Edinburgh, said: “Overall, despite ongoing economic uncertainty Edinburgh has remained resilient. Occupiers now have a much clearer understanding of their requirements and recognise that they need to start their search as early as possible to secure best in class office accommodation. Given the difficulties around delivering new stock, this should give developers the opportunity to seek pre-lets in order to assist with the funding of new space. We will also see landlords refurbish existing buildings in order to continue to attract and retain businesses moving forward.”
Mark Walsh, EMEA head of corporate account management, global occupier services at Savills, added: “We’re seeing many occupiers having a clearer understanding of their real estate requirements post-Covid. Businesses continue to focus their leasing requirements on Grade A offices which have excellent ESG credentials. This has been driven by the desire to satisfy employee needs and ensure staff return to the office in addition to supporting wider corporate sustainability ambitions.”
