According to international real estate advisor Savills, office take-up in Aberdeen in the second quarter of 2018 totalled 90,647 sq ft taking the total for the first six months to c.180,000 sq ft across 52 deals.
The firm says churn in the market is being brought about by a significant rise in the number of deals taking place, compared to the corresponding period in 2017, when 30 lettings completed amounting to c.240,000 sq ft.
Key deals include: Ping Petroleum committing to 8,777 sq ft at Caledonian House; Aberdeen Journals taking 18,963 sq ft at 1MSq, Marischal Square, and RBS committing to 7,049 sq ft next door (2 MSq); a 6,079 sq ft letting to Verus Petroleum UK Ltd at The Silver Fin Building; and Serica Energy taking 7,300 sq ft at H1, Hill of Rubislaw.
Dan Smith, director at Savills in Aberdeen, comments: “Office take-up in Aberdeen in 2018 appears on target to match the improved level of activity seen last year, however what is most interesting is the make-up of these figures. Unlike 2017 when the city’s two largest deals accounted for almost 50% of annual take-up, this year we are seeing a far greater number of occupiers looking to relocate and take-up has been characterised by a larger number of smaller deals. It is our view that a market with greater churn is a healthier market; one which is characterised by greater stability, and is less susceptible to fluctuation.”
“Further it is interesting to note that a new record rent for the city has been achieved in two separate deals at The Silver Fin – CATS Management and Verus Petroleum – both of whom are paying £32.50 per sq ft. Whilst rent at this level continues to be underpinned by substantial incentives, these deals again emphasise the “flight to quality”, with occupiers prepared to pay full rents for space which is well located and of high specification.”
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