Half-year office take-up in Edinburgh rocketed by 73% compared with the corresponding period in 2006, according to the latest analysis from Jones Lang LaSalle
The figures confirm that the total level of office take-up from January to June 2007 exceeded 592,000 sq ft. In addition, take-up for the second quarter was twice the level of the first quarter, at 398,000 sq ft.
Ben Reed, a director at Jones Lang LaSalle Edinburgh, said: ‘The latest market analysis supports recent sentiment that the office market has turned an important corner and is witnessing improving fortunes.
'Strong demand being driven by strong business confidence, corporate profitability and rising employment levels are increasing the requirement for office space in the city and squeezing supply.
'Rents are continuing their upward rise and we expect this to continue as substantial increases in net absorption are causing vacancy rates to drop further.’
The largest deal, according to Jones Lang Lasalle, was the sale of the former Standard Life offices at Tanfield to Bellhouse Joseph and Carlyle Group.
The significant lettings in quarter two were to Aberdeen Asset Management at 40 Princes Street and Baker Tilly at Edinburgh Quay 2.
South and west Edinburgh have seen improved take-up. In west Edinburgh alone, the half-year take-up has shown a three-fold increase on the previous year.
Reed said there is an increased demand for these more peripheral locations, particularly from parties seeking lower cost options or accessibility to the central belt.
