A LACK of top-quality office space in Edinburgh and Glasgow has helped the Scottish cities to outperform their competitors south of the Border, according to a report published today.
Scotland’s two largest cities together accounted for a massive 42 per cent of all office space rented out in the “regional” market during the three months to 30 June as demand outstripped supply, commercial property firm GVA found.
Toby Withall, national markets director for GVA Scotland, said: “These figures highlight the potential problems that will affect Edinburgh within the next couple of years.
“What we are witnessing is an increasing demand for space but there is a significant shortfall of quality office space available in the capital. If occupiers whose leases are due to expire in 2013-15 decide, as expected, to relocate this will only intensify the situation further.”
There is a lack of top-quality “Grade A” office space in both Edinburgh and Glasgow, with the Scottish capital expected to run out of the highest-value office space within the next 18-24 months, GVA added. A lack of funding is holding back speculative developments, the firm said.
Edinburgh chalked up the two largest deals during the second quarter, with fund manager BlackRock taking 80,000sq ft at Exchange Place and price comparison website Skyscanner leasing 27,122sq ft at Quartermile.
Stripping out its two largest deals, Edinburgh still reported 142,878sq ft of city centre office space being leased, putting it ahead of second-placed Manchester, which had 132,584sq ft.
Glasgow finished in third place with 118,870sq ft, outperforming cities including Birmingham, Cardiff, Liverpool and Newcastle.