In a recent study carried out by global consultancy Arcadis, Edinburgh was named the best city in the world to live thanks to its low crime rate, high levels of education and the overall health of its workforce.

The 2018 Sustainability Cities Index report measured the social, environmental and economic health of 100 cities around the globe, with the results placing Edinburgh ahead of London, Paris, Singapore and Stockholm.

The Scottish capital is also considered one of the best UK cities in which to work. It is home to more FTSE 100 companies than any other UK city outside London, with a large banking, insurance and financial services occupier base. Edinburgh is also one of the leading start-up cities, with Skyscanner, Fanduel and Rockstar North all examples of home-grown tech companies.

As demand for office space continues to outstrip supply the vacancy rate of Grade A and B offices in the city centre is now almost 1 per cent with rents hitting £35 per sq ft and climbing. It is important to understand the factors contributing to Edinburgh’s success as a business location to date so that we can plan and develop in a way that supports future business growth.

Why Edinburgh?

• The city retains 40 per cent of its graduates contributing towards positive net migration.
• The cost of talent is affordable compared with other global cities. This in turn attracts multinational occupiers.
• The cost of living in Edinburgh is 25 per cent lower than in London, suggesting a strong argument for companies to 'north shore'.
• The city has a diverse economy with its growth forecast to significantly outpace Scotland as a whole.
• Those who live in and around the city tend to have a high quality of life.
  
  

Opportunity for growth

• As part of the £1.1 billion City Deal, the UK and Scottish Governments are each investing £300 million into Edinburgh, which will be used to support growth through innovation, infrastructure, housing, tourism and culture, including a new concert hall.
• Investments at Heriot-Watt, Queen Margaret and Edinburgh University is expected to create an additional 21,000 jobs for the city.
• The expansion of Edinburgh airport means there are now flights to more than 150 destinations.
  
  

Office supply

• In all locations, headline office rents are rising and rent-free periods are reducing.
• Very tight supply of space in Edinburgh means many are having to consider re-gearing their leases well in advance of expiry and landlords face significant asset management opportunities, adding value through building improvements.
• West Edinburgh and Haymarket both offer substantial rent growth prospects subject to considerate refurbishment and redevelopments to provide the right space for today’s occupier.
• The shortage of supply and sustained demand in central Edinburgh will mean rental growth continues.

Further information

Read more: Spotlight: Scottish Office Market

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