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Spotlight: Scottish Office Market

Cadworks, above, will provide Glasgow with 94,000 sq ft of Grade A space on its completion in 2020. Savills are acting on behalf of the landlord

We forecast the sub 5,000 sq ft market to strengthen through 2018, boosting total office take-up to 1.8 million sq ft during 2018


Summary

■ Take-up in the first quarter of 2018 reached 493,000 sq ft in Scotland's core office markets (Aberdeen wider, Edinburgh city centre, Glasgow city centre), 9% above the five-year quarterly average of 452,000 sq ft.

■ Over the next five years, Aberdeen, Edinburgh and Glasgow are forecast to see a combined 3.6% office based employment growth, in line with the national average.

■ Traditional offices must continue to reinvent themselves in order to remain attractive and compete with serviced offices for the sub 5,000 sq ft deals.

■ Prime office yields remain at 6.25% and 5.5% for Aberdeen and Glasgow respectively, whilst Edinburgh's prime yields have moved in a further 25 bps to 5% amid strong investor demand for the capital.

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