Take-up

H1 2022 take-up, totalling 256,000 sq ft, was an increase of 361% on the H1 2021 total. Furthermore, this was the highest H1 total since 2015, and 54% above the five-year H1 average. This represents a significant success for the market, with 2022 take-up already exceeding the annual total in 2021 by 30%, with two quarters of the year still remaining.

Grade A take-up, totalling 152,000 sq ft, equated to 59% of H1 take-up. In terms of proportion of total take-up, this was 37% above the five-year H1 average Grade A proportion.

Supply

Total supply decreased by 7% in Q1 2022 to a total of 2.6 million sq ft. Furthermore, Grade A supply also decreased by 9% to 785,000 sq ft. This is the lowest level of total available supply since 2019 and is in line with the five-year average for the market.

The total vacancy rate decreased by 1.9% to 25.3% in Q1 2022. Additionally, Grade A vacancy rate increased by 0.8% to 7.6% at the end of the quarter.

Take-up by business sector

The Extraction & Utilities sector was the most active in H1, accounting for 55% of total take-up. This included the 100,000 sq ft Grade A acquisition at the Silver Fin Building by Shell.

Elsewhere, it was also a strong start to the year for Public services, Education & Health which took an 11% share of overall take-up. This included an 18,000 sq ft letting to North Sea Transition Authority at Marischal Square.

Rents

The prime rent remained stagnant in the first quarter of 2022, which currently stands at £32.50 per sq ft. Between 2016 and 2022, prime rent has grown by 3.2% in the Aberdeen market. That being said, 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 Q1 2022, average Grade A rents increased to £23.50 per sq ft, which suggests there is cause for optimism and potential for further growth in the coming months.

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