According to international real estate advisor Savills, office take-up in Aberdeen in the first half of 2017 has already reached approximately 270,000 sq ft (25,083 sq m), marking a 17% increase on total take-up for the whole of 2016 (c.231,000 sq ft / 21,469 sq m).
Key deals include Marathon Oil taking 31,668 sq ft (2,942 sq m) from Kennedy Wilson at the Hill of Rubislaw, Total’s 108,000 sq ft (10,033 sq m) assignation from Subsea 7 at Arnhall Business Park and local legal firm Stronachs lease of 13,683 sq ft (1,271 sq m) at 28 Albyn Place.
Dan Smith, director at Savills Aberdeen, comments: “The improvement in market sentiment and deal activity we reported at the end of the first quarter in Aberdeen continues as the city sees increased churn from both new and existing occupiers. This is largely a result of lease events, improving energy sector demand and increased flexibility relative to lease terms.”
With the expected completion of Titan / BA Pension Funds Silver Fin Building (135,000 sq ft) and Muse / Aviva’s Marischal Square (175,000 sq ft) – both of which are due for practical completion later this month (July) – Savills expects the strong level of leasing activity to continue as occupiers look to relocate to better quality office accommodation in the city.