Office take-up in Edinburgh surpassed 1 million sq ft (9,290 sq m) in 2015, noticeably strong and 7 per cent ahead of 2014, as tech occupiers become increasingly active in the city.

A lack of new stock continues to drive occupiers to act where they might have otherwise waited, and this will continue in 2016. Examples of such activity at the end of last year include web-based fantasy sports game operator FanDual pre-letting 59,000 sq ft (5,481 sq m) and Cirrus Logic concluding on 70,000 sq ft (6,503 sq m), both at Quartermile 4. Quartermile 4 is currently under construction and due to complete in Q2 2016.

With JP Morgan and HSBC both expanding in Edinburgh Park, the market has witnessed an overall uptick in activity across West Edinburgh, including South Gyle Business Park. Occupier confidence and diminishing city-centre stock are motivators for this, alongside rents sitting 40 per cent lower than those of similar Grade A quality in the city centre. The level of activity at West Edinburgh, in comparison with recent years, demonstrates the health and depth of the market.

Rental tone in the city centre also improved throughout 2015, with Grade A rents sitting at £32.50 per sq ft (£344 per sq m) in December. We anticipate rents will achieve £34 per sq ft in the year ahead for the best quality stock, along with continued reduction in rental incentives.

Further information

Contact Savills Office & Business Space