Take-up

Q3 2023 take-up in Aberdeen totalled 141,000 sq ft. This was over three times the amount achieved in Q3 2022 and the best quarter so far in 2023, surpassing 2023 H1 take-up by 32%.

Demand was spread across 29 completed transactions which was 70% above the long-term average Q3 deal count. The largest deal in Q3 2023 was a management agreement of 21,000 sq ft to IWG at Pavilion One, Westpoint Business Park. The largest letting was c.19,000 sq ft subletting to Odfjell Technology (UK) Limited at Prime Four Business Park.

Supply

Total supply decreased by 9% in Q3 2023 to a total of 2.1 million sq ft. Total supply is now 19% below the five-year average and 16% below the 2022 level.

The Grade A supply level for the market decreased by 50% during the same period, standing at 204.534 sq ft at quarter end.

The total vacancy rate for Aberdeen has fallen to 20.5%. However, more interestingly, the Grade A vacancy rate has fallen to just 2% at the end of Q3, highlighting the lack of Grade A space within the market.

Take-up by business sector

Continuing the trend seen in the first half of the year, 'Extraction & Utilities' accounted for the largest proportion of take-up in Q3; however, this quarter, it shared the top spot alongside the TMT sector.

The Extraction & Utilities' sector was made up of ten deals, with the largest being the 10,149 sq ft letting at The Capitol, 431 Union Street to Kellas Midstream Limited. The TMT sector was spread across five deals with the largest being a sub-let to Odfjell Technology (UK) Limited at Prime View, Prime Four Business Park.

Rents

There was no change in the Prime rent in Q3 2023, with top rent standing at £32.50 per sq ft. However, Savills is predicting rental growth, with most recent forecasts projecting 2% growth to £33 per sq ft in 2023, with further growth of 6% to £35 per sq ft expected by the end of 2027.

Interested in other areas of the UK?

View all of our latest Q3 2023 Occupational Office Data research here.