Aberdeen’s revitalisation efforts have received a fresh boost with Rotterdam-headquartered decommissioning specialist, NMC Energy, committing a six-figure investment to new office space on Union Street.
The company has submitted plans to spend £110,000 on refurbishing a significant portion of Diligent House at 475-485 Union Street, signalling confidence in the city’s commercial property market and its strategic position within the burgeoning North Sea energy transition sector.
NMC Energy, which currently operates from offices on Bon Accord Crescent, intends to transform the newly acquired space within Diligent House to “form new meeting rooms and office spaces.” The firm specialises in the complex and critical field of decommissioning oil rigs and removing subsea equipment from the North Sea, a sector experiencing substantial growth.
This expansion comes at a pivotal time for Aberdeen’s city centre. Union Street has seen concerted efforts to reverse a period of decline, with initiatives like “Our Union Street” driving regeneration.
The broader Aberdeen office market is also showing resilience, particularly within the energy sector. The ‘Extraction & Utilities’ sector was the most active in 2024, accounting for 24% of all leased office space. Grade A availability has reached a record low, indicating a tightening supply of premium office space, while prime rents, though stable, are forecast to rise.
NMC Energy’s investment aligns with the significant opportunities in the North Sea decommissioning market. Driven by an ageing oil and gas infrastructure, this market is projected to expand considerably. Forecasts suggest the UK offshore decommissioning market will grow from US$1.41 billion in 2025 to US$2.53 billion by 2032, with the wider North Sea market potentially reaching around US$11.38 billion by 2031. Stricter environmental regulations also continue to fuel demand for specialist services like those provided by NMC Energy.
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Diligent House itself, a four-storey office building constructed in 1985, was sold at auction last year for £525,000. Following its acquisition, the building underwent an extensive exterior and interior refurbishment, offering modern office environments.
Property agents Savills are currently marketing units within Diligent House, with available spaces ranging from 2,335 to 17,793 square feet. The ground floor is currently under offer, with four other suites still available.
Notably, the “Our Union Street” group, central to the street’s revival, also recently relocated into the building. Its chairman, Bob Keiller, articulated the success of their mission, stating, “Success is us getting kicked out!” – a sentiment reflecting the group’s objective to fill empty units and catalyse new business activity along the historic thoroughfare.
