Take-up

Edinburgh city centre take-up at the end of 2024 totalled 750,621 sq ft, the highest annual take-up since 2017, and accumulated across 114 transactions. The total was 70% higher than 2023, and 33% and 29% above the five- and ten-year averages. 63% of the annual total was completed in Q4, notably due to Lloyds Bank acquiring the largest deal on record for Edinburgh, and also the three deals at 6 St Andrew Square that were above 90,000 sq ft combined.

Grade A and Prime take-up totalled 553,635 sq ft, 123% higher than the combined total in 2023, and also 73% higher than the five-year average take-up.

Supply

Availability at the end of 2024 stands at 1.25 million sq ft, an increase of 9% on the previous quarter. Consequently, this means the overall vacancy rate has now increased to 13.7%.

Grade A and Prime availability totals a combined 615,983 sq ft at the end of 2024, on par with the previous quarter. Prime availability totals 177,162 sq ft, which represented a decrease of 12% on Q3 2024. This means the vacancy rate has decreased by 40 basis points. This further demonstrates occupiers' preference towards best-in-class space.

Take-up by business sector

The most active sector during 2024 was the 'Banking' sector, which leased a total of 286,949 sq ft, across three transactions. This was the highest annual total on record for the sector, and consequently accounted for 41% of take-up. The largest deal in 2024 was acquired by Lloyds Bank, for a total of 282,518 sq ft at Port Hamilton.

The 'Professional' sector was another notably active sector in 2024, accounting for 13% of the total. This was across 26 transactions, with the largest acquired by law firm, Dickson Minto at 6 St Andrew Square, totalling 23,902 sq ft.

Rents

There was no increase in the Prime headline rent during Q4 2024, which currently stands at £45.50 per sq ft, the second highest in the Big 6 markets. Over the previous five years, headline rent in Edinburgh has grown by 23%, and looking at the further growth prospects for the market, the five-year outlook 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 14% increase on current rental levels.

Interested in other areas of the UK?

View all of our latest Q4 2024 Occupational Office Data research here.