Take-up

Q3 take-up for the Aberdeen market totalled 48,000 sq ft spread across 19 completed lettings. This brings the 2022 Q1–Q3 total to 304,000 sq ft, which already surpasses the annual total achieved in 2021 by 54% as the market looks to continue its recovery from the effects of the Covid-19 pandemic.

Grade A take-up in Q1–Q3 2022 was 160,000 sq ft, which accounted for 53% of the take-up total. This represented a good return for a market which has recorded an annual average Grade A proportion of 35% over the last five years.

Supply

Total supply decreased by 4% in Q3 2022 to a total of 2.5 million sq ft. The Grade A supply level for the market decreased by 24% during the same period, standing at 615,000 sq ft at quarter end.

The total vacancy rate for Aberdeen has fallen 310 basis points in 2022 to 24.1%. Grade A vacancy rate has fallen 240 basis points so far this year to 6% at the end of Q3.

Take-up by business sector

Extraction and Utilities was the joint most active sector in Q3, accounting for 19% of total take-up. This included the 9,000 sq ft letting to Dolphin Drilling Limited, which was the largest letting of the quarter.

Elsewhere, it was also a strong quarter for the Professional sector, which accounted for 18% of total take-up. This was spread across four deals, the largest of which was the 3,600 sq ft letting to Grant Smith Law Practice in the city centre.

Rents

There was no change in the prime rent in Q3 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. So far in 2022, average Grade A rents have been £22.70 per sq ft, representing a 3% increase on the 2021 average.

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View all of our latest Q3 2022 Occupational Office Data research here.