By Scott Wright
DEMAND for office space has remained “robust” in Edinburgh despite people continuing to work at home, property agent Knight Frank has declared.
New research published by the firm suggests the market has had an “encouraging start to 2021”, with around 90,000 square feet taken up in the first quarter. This compares with around 99,000 sq ft in the previous quarter, and 68,915 sq ft during the same period of 2020. The first quarter of last year was largely over by the time lockdown began. Knight Frank noted there are requirements for around 500,000 sq ft in the city but said the development pipeline continues to be restricted; it said 281,000 sq ft of new space is under construction.
Deals transacted in the first quarter saw Motorola sign up to a 10,844 sq ft office at Caledonian Exchange on Canning Street, and Trustpilot take 9,500 sq ft at St Andrew Square. Law firm MacRoberts secured 6,500 sq ft at 10 George Street.
Simon Capaldi at Knight Frank Edinburgh said: “While much of the economy remained shut down, it has, nevertheless, largely been an encouraging start to 2021 for Edinburgh office take-up. Some of the larger deals this quarter were held up due to ongoing uncertainty, but their conclusion is indicative of pent-up demand and, with many businesses beginning to re-open and schools returning, there is an air of positivity. Part of that is because there is still a steady stream of active requirements coming from companies as they start to look beyond Covid-19. Even though few people have spent much time in an office in the last 12 months, they are still playing a central role in many occupiers’ strategies.”
He added: “If anything, the flight to quality that took hold last year has only increased as occupiers look to best-in-class space to accommodate the return of staff and provide them with the working environment they need.”
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