Over 1,100,000 sq ft of office space was transacted in 2017 – a 40 per cent jump in activity compared with the final year-end take up in 2016 – and the first time the million mark has been surpassed since 2001.
JLL were involved in 50 per cent of all deals in Edinburgh in 2017. Total occupier take up in 2017 reached this significant milestone following a number of large transactions. The largest deal of the year, the UK Government’s decision to locate its HMRC hub to Edinburgh, generated a 186,500 sq ft pre-letting at New Waverley which will house 2,900 civil servants by 2020.
Other notable deals include Standard Life Aberdeen taking 69,000 sq ft at 10 George Street and State Street leasing 65,628 sq ft at Quartermile 3. Edinburgh’s reputation as an attractive destination for tech firms continued to grow, making up over 20 per cent of all take up. Australian financial firm Computershare took 41,395 sq ft at 4 North and fin tech firm Nucleus Financial moved into 18,750 sq ft at Greenside.
The year’s four largest deals were all pre-lets, highlighting the critical supply dynamic in the city. At the end of 2017, the vacancy rate had dropped to 3.8 percent, down from 4.8 percent at the same point in 2016...