Aberdeen has had the highest rate of increase in prime office rents in the last six months according to Knight Frank research.
Aberdeen’s rate of increase is ahead of Central London, Birmingham and Manchester according to the firm’s Regional Office Market research.
Prime rents increase by 12%
Prime rents in the city have outperformed other markets with an increase of 12% to £24/ sq ft compared with £21.50/ sq ft in quarter one in 2007.
Central London has seen an increase of 10% compared with Aberdeen’s increase of 12%.
Glasgow stable at 6% increase
Glasgow has remained stable at a rate of £27.50/sq ft. During the first quarter prime rents in the city rose by 6% to £27.50/ sq ft up from £26/ sq ft in the last quarter of 2006.
Edinburgh has also seen prime rents rise by 4% to £28.50/ sq ft.
Katherine Monro, partner in Knight Frank’s Aberdeen office, said: ‘The Aberdeen market has performed exceptionally well this year and a lack of high quality Grade A stock has continued to drive rents in the city. We have witnessed a steady rise in office rates throughout 2007 and as demand continues to outstrip supply this trend looks set to continue in the near future.’