Edinburghs lack of offices could cost £800m
March 14th, 2008 | by Adam Lucking |
Edinburgh does not have enough office space for the small and medium businesses and as a result could lose £800m.
It seems that the supply of Grade B office space has declined by 29 per cent. This is significant as it is the type of space preferred by small to medium enterprises. SMEs are thought to be worth £8.8bn to the economy, this is around £100,000 a worker and the sector grew by 10 per cent in 2007.
Economist, Richard Marsh, says that even though SMEs have underpinned Edinburgh’s growth, there is a growing problem of not being able to accommodate their growth. Demand for Grade B office space in the city is exceeding the supply and businesses are left feeling unsatisfied.
As a result some are turning to Grade A office space, but with the rent increased by £5 - £10 per sq ft this may not be affordable for all businesses and they could look elsewhere.
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