Is the upturn in commercial property markets in Aberdeen due to rising oil prices or the region’s investment in renewable technologies?
There’s no doubt that in the first half of this year we have seen significant degrees of confidence returning to both industrial and office markets in Aberdeen.
Office Market
The total take-up in the first half of the year was 256,426 sq ft, representing a 361% increase on the same period in 2021.
Q2’s figure of 60,521 sq ft also represents the strongest Q2 performance for office take-up since the start of the Covid-19 pandemic.
Grade A space within the city remains in short supply. Increasing numbers of landlords are refurbishing existing stock to meet demand for prime space.
It is clear that the energy sector continues to view Aberdeen as an attractive and the most appropriate venue to house its office-based resources.
Industrial Market
Here the picture is broadly similar. There has been a surge of deals in Q1 and over 235,000 sq ft of industrial space was transacted during the first three months of 2022 in Aberdeen.
This represents a 37% increase on the same period in 2021. The number of larger occupier requirements being circulated on the market is on the rise.
There is still an excess of supply but levels of demand continue to rise, highlighting the relative lack of good-quality, available accommodation.
It’s not possible to state with any certainty if the upturn is due to rising oil prices or the
transition. Both will be playing their part.
All this, of course, is great news for landlords but not so good if you are actively looking to relocate or expand. Rents and prices are on the rise and the right space may be harder to find.
As always, it’s vital that professional advice is sought at the outset. If your business has an imminent requirement for a change of space, then I will be pleased to hear from you.
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