Edinburgh Office market defying the crunch

It appears that Edinburgh’s office market is reacting much better to effects of the downturn compared to Glasgow’s. Top rental values have reached £29.25 per square foot, a very slight increase.  Compare this to the headline rental value in Glasgow of £27.50 per sq ft, which has not increased since the start of 2007.  Grade A office space in Edinburgh is thought to top £30 per square foot this year while Glasgow will struggle to pass £28 per square foot.

The lack of Grade A office space in Edinburgh accompanied by a number of pre lets is thought to be fueling the increases in rental values.  Unlike other UK cities, Edinburgh’s take up of office space has not been falling in recent months - there was nearly a quarter of a million square feet of office space taken up in the first half of 2008, very similar to the figure for last year (245,000 sq ft).

A review of Edinburgh’s world heritage status is also being undertaken that could result in a much faster planning process.  This could have a beneficial impact for developers meaning that new stock could come onto the market much quicker.

Related office space articles

• The Choregus Guide to Office Space
• Edinburgh office rates up
• Success at Glasgow business centre
• Rental costs for Glasgow and Edinburgh reach parity
• Office Shortage in Edinburgh