Oil price and staff returning to the workplace boost Aberdeen office take-up

NEW research has revealed that office take-up in Aberdeen almost doubled between the second and third quarters of 2021.

Knight Frank analysis found that a ‘sustained’ lift to the oil price and occupiers returning to the workplace helped boost activity. The commercial property consultancy said office take-up between July and September reached 51,316 sq. ft – an increase of around 97% on the compared with the second quarter of 2021. It is also ‘markedly’ ahead of the first quarter’s 28,000 sq. ft.

The stats were boosted by Mental Health Aberdeen’s move to Langstane House, occupying nearly 12,000 sq. ft. Other deals included Shepherd & Wedderburn’s move to 37 Albyn Place and Kuehne + Nagel taking around 3,500 sq. ft at Aberdeen International Business Park in Dyce.

Although the third quarter take-up figure was down on the same period in 2020, when around 80,000 sq. ft. of office space was transacted, Knight Frank said more significant deals could follow later this year.

Matthew Park, office agency partner at Knight Frank Aberdeen, said, “The last three months have seen an upturn in activity, as more occupiers return to the office and business starts to get back to some sort of normality. The oil price is still a big influence on the commercial property market in Aberdeen and the fact that it has stayed above $60 per barrel of oil equivalent for the last six months has also helped. There is a cautious and tentative optimism returning to the market, with several deals likely to conclude by the end of 2021.”