DEMAND for Edinburgh office space reached a 13 year high in 2017 amid strong interest from firms in sectors such as financial services and technology while Glasgow also performed well, property specialists have said, writes Mark Williamson.
CBRE calculated a total of around 1.4 million square feet of space was taken up in Edinburgh. Demand last exceeded 1m sq ft in 2004.
Around 632,000 square feet was taken up in Glasgow, compared with a five year average of 550,000 sq ft.
Large lets in Edinburgh included the UK Government taking 165,000 sg ft at the New Waverley development off the Royal Mile to house 2,900 civil servants.
Standard Life took 69,000 sq ft on George Street.
CBRE transactions director Angela Lowe said recent take-up indicated the continued importance of the financial services and tech sectors in generating demand for quality, city centre offices.
The property firm warned the supply of new Grade A space is at a critically low level meaning Edinburgh rents will come under pressure.
Notable deals in Glasgow included the Department for Work and Pensions taking 84,542 sq ft at 1 Atlantic Quay.
CBRE said Glasgow is suffering from a severe shortage of ready-to-occupy Grade A space.
Some 664,000 sq ft was let in Glasgow in 2016. Big first half deals boosted the total.
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