Take-up

Edinburgh take-up in the first quarter of 2025 totalled 111,265 sq ft and was achieved through 40 deals, 54% above the total number of deals in Q1 2024. Take-up was also 54% higher than the same period in 2024 and 38% higher than the five-year Q1 average, continuing to show occupier demand within the market.

Grade A and Prime take-up totalled 47,998 sq ft across nine deals and accounted for 43% of the total. This was also 59% higher than the combined total in Q1 2024.

Supply

Total availability in Edinburgh at the end of Q1 2025 totalled 1.3 million sq ft, 6% above the previous quarter. The overall vacancy rate now stands at 14.6%, an increase of 90 basis points (bps). Secondary stock makes up over 58% of the availability, totalling 757,000 sq ft.

Grade A and Prime availability total 413,377 sq ft and 161,859 sq ft, respectively, a decrease of 6% and 9%, respectively, highlighting the continued lack of high-quality office space in the market. The combined vacancy rate stands at 6.3%, a decrease of 40 bps.

Take-up by business sector

The most active business sectors during Q1 2025 were the 'Professional' and the 'TMT' sectors, both accounting for 20% of the total. Both sectors' take-up totalled 22,000 sq ft, with Tetra Tech acquiring the largest deal of 9,472 sq ft at Quay 2.

The 'Business & Consumer Services' sector was another notably active sector, accounting for 17% of the total. The sector leased a total of 19,000 sq ft across seven deals, with the largest totalling 7,000 sq ft, and was acquired by Dentsu at 10 Waterloo Place.

Rents

There was another increase in the Prime headline rent during Q1 2025, which means headline rent has now reached its projection for 2025 and stands at £48 per sq ft. However, it is worth noting that this is down to one deal of over 5,000 sq ft. Over the previous five years, headline rent in Edinburgh has grown by 30%, and looking at the further growth prospects for the market, Savills predicts that the Prime rent will be at or above £53 per sq ft by the end of 2029, representing a 10% increase on current rental levels. However, Savills also expects that a new build pre-let will elevate rental levels to £55 per sq ft or higher, which would represent a rental uplift of 12%.

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View all of our latest Q1 2025 Occupational Office Data research here.