Take-up

Edinburgh city centre Q2 2024 take-up amounted to 90,000 sq ft across 27 deals done. Although this was 9% below the five-year Q2 average, it was 25% higher than the previous quarter, providing market optimism for the remainder of 2024. Q2 brought the half-year total to 163,000 sq ft, with 53 transactions during this period.

Grade A and Prime take-up in Q2 totalled 49,000 sq ft, which was 5% higher than the five-year Q2 average. H1 2024 combined total for Grade A and Prime was 79,000 sq ft, which was only 1% below the five-year H1 average.

Supply

Availability at the end of H1 2024 stands at 1.2 million sq ft, slightly above the previous quarter, with the overall vacancy rate currently standing at 12.9%. 

Of this total, Prime Grade A space only accounts for 116,000 sq ft, with 75% of this under offer, and only a further 144,000 sq ft due to be delivered in the next six months with much of this already under offer. There is no further deliverable development after that date (funded, planning and build contract placed).

Take-up by business sector

The most active sector during H1 2024 was the 'Professional' sector, which leased a combined total of 36,000 sq ft, therefore accounting for 22% of the overall total. With 13 transactions done, this was the highest number in H1 for the sector on record. The largest deal was acquired by Azets Holdings for a total of 13,000 sq ft.

Another notable sector during H1 was the 'Insurance & Financial' sector, accounting for 21% with a total of 33,000 sq ft. The sector saw eight deals, with the largest acquired by Hymans Robertson at 30 Semple Street, totalling 15,000 sq ft.

Rents

While there was no official increase in the Prime headline rent of £43 per sq ft in Q2 2024, we understand that a number of deals that are subject to confidentiality agreements have concluded at £45 per sq ft, with more transactions at this level in the pipeline. Looking at the further growth prospects, the five-year outlook for the market is optimistic with Savills predicting that the prime rent will be at or above £52 per sq ft by the end of 2028, representing a 21% increase on current rental levels.

Interested in other areas of the UK?

View all of our latest H1 2024 Occupational Office Data research here.