NEW figures have revealed that Aberdeen’s industrial property take-up remained ‘resilient’ in the first half of the year, despite a challenging macroeconomic backdrop and policy uncertainty.
Research from Knight Frank found there was 440,003 sq. ft. of take-up across 59 deals between January and June, up 54% on the same period last year. Take-up edged higher in the second quarter, with 221,445 sq. ft. of deals compared to 218,558 sq. ft. during the first.
The Granite City is on track to beat last year’s total and comfortably exceed the 10-year average of 690,000 sq. ft.
While Bridge of Don accounted for the largest share of take-up at 129,894 sq. ft. (30%), Dyce led in deal volume, with 16 transactions representing 27% of the total.
Buoyed by the Energy Transition Zone (ETZ), Aberdeen’s south side accounted for nearly one-quarter (24%) of deals and total take-up. Previous research from Knight Frank found that last year the ETZ accounted for 35% of take-up – a 45% increase on the area’s average before the zone was created.
David Gavan, surveyor at Knight Frank Aberdeen, said, “While there continues to be uncertainty around government signalling and energy legislation in the north east, the numbers highlight that opportunities remain for private investors in the current market. Occupiers are being drawn into modern, high-quality buildings, often leaving behind dated facilities that no longer meet their needs. The resilience in industrial commercial property take-up reinforces Aberdeen’s role as a hub for both traditional and transition energy industries.
“The majority of deal activity in Aberdeen is still being driven by traditional energy occupiers, emphasising how future legislative decisions will shape not only the energy sector, but also the many industries across the region which are intrinsically linked to the North Sea.”
