Businesses move fast as City South nears capacity

DANDARA City South Business Park has reached a major milestone with phase two now fully sold and fewer than half of the final phase three units remaining.

Located in Portlethen, just south of Aberdeen city centre, the park is said to be attracting a broad spectrum of occupiers and investors.

Prices start at £145,000 for 850 sq ft freehold units, tapping into renewed appetite for future-ready commercial space in well-connected locations. The trend mirrors wider market shifts – in the first half of 2025, Aberdeen office take-up reached 163,188  sq  ft across 31 transactions, matching the five-year average. Grade-A availability has dropped to its lowest level since 2014.

Alongside the full sell-out of Phase 2, Dandara has completed 16 sales/leases in phase three, with another six units under offer. Just 12 remain, with a small number of office suites including shell-and-core and move-in ready accommodation, and land plots also available.

The opening of EG Group’s ‘on the move’ retail site – including a drive-thru unit currently under construction – has boosted visibility and traffic into the park.

Claire Bathgate, head of sales at Dandara Aberdeen, said, “Phase two selling out is a clear indicator that Aberdeen’s commercial sector is on the move again. City South offers the flexibility, modern standards and value that businesses and investors are actively seeking. The fact interest is outpacing space, despite the broader challenges elsewhere, shows the strength of the park’s offering.”

New occupiers include Bell Group and Interocean as well as Macron, Kerr Compressors, Afrimart, Protect, and Shine. Porters Pharmacy has recently completed its unit handover, with a German bakery also set to open later this year. Several businesses have acquired additional units for investment, with growing interest in properties sold with tenants in place.

Graeme Nisbet, MD at FG Burnett, commented, “This is a business park that’s responding to what the market needs – proper flexibility, strong transport links and the potential for future return. Whether it’s for operational use or investment, the level of activity we’re seeing at City South speaks volumes.”

Dominic Millar, senior surveyor at CBRE, added, “Grade-A office space in Aberdeen is becoming increasingly scarce. That scarcity, combined with rising expectations around energy standards and transport access, is shifting occupier focus to locations like City South. It’s no surprise we’re seeing continued demand here – it’s one of the few locations offering both quality and flexibility.”