Take-up

Q4 2021 take-up, totalling 91,001 sq ft, was a 77% increase on Q3 2021. This took annual 2021 take-up to 197,914 sq ft which was 48% below the five-year average as the market looks to recover from the ongoing effects of the pandemic. Momentum is building within the market, though, with take-up increasing in both of the final two quarters of the year.

Grade A take-up, totalling 80,157 sq ft, equated to 41% of overall take-up in 2021. As a proportion, this was just 4% below the share of 45% for Grade A take-up in 2019.

Supply

Total supply increased by 9% in 2021 to a total of 2,897,521 sq ft. Furthermore, Grade A supply stands at 865,074 sq ft at year end. A notable addition to Grade A supply was the Wellheads Avenue campus which comprises 193,000 sq ft.

The total vacancy rate increased by 2.4% to 28% in 2021. Additionally, Grade A vacancy rate increased by 3.4% to 8% at year end.

Take-up by business sector

The Extraction & Utilities sector was the most active this year, accounting for 25% of take-up in the Aberdeen market.

Elsewhere, it was also a strong year for the Public Services & Education & Health sector which took a 17% share of 2021 take-up, totalling 34,500 sq ft. This was the highest quantum of take-up in this sector since 2016.

Rents

Prime rents remained stagnant in 2021 and stood at £32.50 per sq ft at year end. Between 2016 and 2021, prime rents have grown by 3.2% in the Aberdeen market. Average Grade A rents have fluctuated during this period, reaching a high of £27.38 per sq ft in 2017 and hitting a low of £21.64 in 2019. In 2021, average Grade A rents were £21.95 per sq ft. It should be noted that this average includes deals from both the city centre and out of town areas of the market.

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