Office occupier activity in Edinburgh increased by 39% in the second quarter of 2009 compared to the previous quarter, showing resilience, according to research by Jones Lang LaSalle.
Occupier take-up totalled 156,000 sq ft in the second quarter including six transactions over 10,000 sq ft. There were no transactions of this size during the first quarter.
Two significant lettings were those at the recently completed Scottish Widows Investment Partnership development at Exchange Place to Scott Moncrieff and Hymans Robertson.
West Edinburgh also saw a large amount of lettings, where take up in the first half of 2009 is close to surpassing the whole of 2008.
While during the first quarter there was a significant increase in supply, supply in the second quarter has fallen by 3% with no new developments in the city centre.
Ben Reed, director of agency said: ‘These figures are a welcome boost to the market and it is particularly pleasing to see a broader spread of activity across the city centre, but also west Edinburgh, where we have seen occupiers such as Business Stream relocating onto Edinburgh Park.
‘According to our analysis, occupier take-up is only down 15% on the corresponding quarter in 2008. Compared to the first quarter we have seen an increase in what we would term medium sized requirements over 10,000 sq ft.’
JLL said that landlords were becoming more flexible in order to secure tenants. There are increasingly competitive rental costs, it said, with some of the best incentives for 10 years.
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