MORE Edinburgh occupiers decided to stay put than take new office space during the second quarter of 2024, according to new figures from Knight Frank.
The independent commercial property consultancy’s analysis of office take-up between April and June found that renewed leases amounted to 135,013 sq. ft. of activity across Edinburgh, while occupiers agreeing to take new space accounted for 113,000 sq. ft.
Edinburgh’s overall vacancy rate remained at around 11%, but new and second-hand grade A availability has fallen to less than 0.4% and 6.7% respectively. A series of pre-lets at New Clarendon and 30 Semple Street have further restricted supply – including Red Rock Power’s agreement to occupy the entire fourth floor at the latter development.
Knight Frank said that occupiers in the city are increasingly looking for ‘let-ready’, fitted offices, providing them with quick access and lower requirements for capital expenditure (cap-ex) on entry.
Chrissie Clancy, surveyor at Knight Frank Edinburgh, said, “The strong theme that has emerged over the course of the past three months has been occupiers deciding to stay put and regear at their current premises. Part of the reason behind this is the lack of good quality stock coming through the development pipeline in Edinburgh. But it is also partially because of uncertainty over size requirements, with working patterns changing, and the cap-ex costs for fit-outs in the current environment.
“Occupiers are favouring let-ready, fitted space, giving them quick access and less financial liability. As a result, second hand space and cat B fit-outs – providing occupiers with a functional office from day one – are growing in popularity. This has required landlords to be flexible, as well as a willing to invest in more upfront work to secure occupiers.”
