Take-up

Aberdeen office take-up in Q2 2024 totalled 59,000 sq ft across 27 deals. Take-up was 13% higher than the same period in 2023 and on par with the five-year average for the quarter. This brought the half-year total to 91,000 sq ft, which consisted of 40 deals, and was 29% higher than the number of deals done in H1 2023. 

Grade A take-up in Q2 totalled 5,000 sq ft which was down on the previous year. Total half-year take-up amounted to 7,500 sq ft and accounted for 8% of the overall total.

Supply

The availability in Aberdeen at the end of H1 stands at 1.7 million sq ft, due to a market recalculation of buildings that will no longer return to office use. This means that the availability has decreased by 21% on the previous quarter, and consequently means that the overall vacancy rate has decreased to 17.2%.

Grade A availability has also decreased in Q2 2024 to a total of 184,000 sq ft, representing a decrease of 16%. Therefore, the Grade A vacancy rate has now declined to 1.8%, which is the lowest figure Savills has on record for Grade A vacancy and highlights the lack of best-in-class office space in Aberdeen.

Take-up by business sector

During H1, the most active sector was the 'Extraction & Utilities' sector which accounted for 31% of the total. The sector leased a combined 28,000 sq ft of space across nine deals, the largest of which was acquired by Reach Subsea, at H1, Hill of Rubislaw, for a total of 7,000 sq ft. 

Another notable sector during H1 was the 'Professional' sector, which leased 13,000 sq ft, consequently accounting for 15% of the total. This included four deals, with the largest witnessing Deloitte acquire 6,000 sq ft at the Silver Fin Building.

Rents

There was no change in the Prime rent in H1 2024, with headline rent standing at £32.50 per sq ft. Savills is predicting rental growth in the next five years, with most recent forecasts projecting a 2% increase to £33 per sq ft in 2024, with further growth of 8% to £35 per sq ft expected by the end of 2028.

Find out more about Aberdeen's property market here.

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