Edinburgh
Take up
TOTAL TAKE-UP IN QUARTER (SQ FT)
CHANGE ON LAST QUARTER
CHANGE ON 10 YR QUARTERLY AVG
TAKE UP (SQ FT)
Source: Avison Young
INSIGHT
Total Q4 take up in Edinburgh was 256,648 sq ft, 38% above than the 10-year average and 50% up on last quarter.
This brings the year to 641,330 sq ft, marginally down on 2021 and 14% down on the 10-year average. The number of deals in 2022, however, was up 14% on the 10-year average, reflecting a greater prevalence of smaller leases.
Q4’s strong volumes were driven by the city centre market, which performed 84% better than the 10-year average, compared to the out of town market suffered at 70% below average levels.
The outperformance of the city centre this quarter was led by BlackRock’s 139,172 sq ft signing at Dundas House, the largest deal across the Big Nine in 2022. Other significant deals of the quarter included Rockstar’s expansion to 11,577 sq ft at Holyrood Park House and Anderson Anderson & Brown’s 9,529 sq ft move to 81 George St.
Including BlackRock’s Q4 deal, the leading sectors in Edinburgh in 2022 were financial services, professional services and TMT & creative, which together accounted for 79% of major deals.
Prime rents remained at £40, having increased 5.3% over the year, whist rent frees remained compressed by the city’s supply shortage at 12 months.
NOTABLE DEALS
Source: Avison Young
PRIME RENT
£40.00
Per sq ft
0%
Quarterly change
Source: Avison Young
5.3%
12 month change
12
Rent free months (10-year lease)
TAKE UP BY SECTOR
Source: Avison Young
ANNUAL TAKE UP (SQ FT)
Source: Oxford Economics
Availability
AVAILABILITY RATE
CHANGE ON LAST QUARTER
CHANGE ON LAST YEAR
AVAILABILITY (SQ FT)
Source: CoStar, Avison Young
INSIGHT
Availability continued its downward trend, falling 13% in Q4 to a rate of 4.9%. A lack of suitable stock combined with occupiers’ flight to quality resulted to a modest peak in availability rates of 7.3% following the pandemic which promptly began to subside in mid-2021.
Of this available space, just 5% is grade A, of which very few buildings across the city centre can currently offer at least 15,000 sq ft on a single floorplate. Of the city’s best-in-class space, just 2% of total availability is rated 5 star by CoStar.
Devlopment pipeline
DEVELOPMENT PIPELINE (SQ FT)
Source: Glenigan, Property Market Analysis, Avison Young
INSIGHT
2023 will be Edinburgh’s most active year for development completions since 2009, with 390,000 sq ft set to complete across two buildings at fully let Haymarket Square.
The only under construction schemes with available space are refurbishments, such as Edinburgh One and New Clarendon House. These high quality schemes will come to market at a time of severe undersupply.
Beyond 2023, the city has a total pipeline of 1m sq ft of under construction and proposed schemes.
Investment
TOTAL INVESTMENT VOLUMES
CHANGE ON LAST QUARTER
CHANGE ON 10 YR QUARTERLY AVG
PRIME YIELD
INVESTMENT VOLUMES
Source: Real Capital Analytics, Avison Young
INSIGHT
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TOP DEALS
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