Regional Capitals
Douglas Gardiner, regional head of agency at Atis Real Weatheralls, said: "A lack of occupier confidence is leading many businesses to put expansion or relocation programmes on hold. "Economic recovery since the end of the Iraq war has been weaker than expected and this has inevitably impacted on Scotland's key office markets. Nevertheless, the situation is not as severe as experienced in London and the South East and we are still seeing deals being done."
Atis Real Weatheralls puts headline Edinburgh rents steady at £27.50 ($45) per sf, while Glasgow rents are treading water at £23 ($38) per sf.
"Prime headline rents have been maintained over the past 12 months. However, increasingly deals are being secured with significant incentives such as rent-free periods and fit-out contributions. The underlying net effective rents have inevitably softened on the back of such inducements," Gardiner said.
In Glasgow the completion of three developments: 200 Broomielaw; Optima at Robertson Street; and 6 Atlantic Quay, will bring an extra 270,000 sf to the market. Edinburgh has two major developments under construction due for completion this year: 28 St Andrew Square with 48,000 sf available and Holyrood Park House, totalling 47,000 sf. Waverley Gate, totalling 210,000 sf is due to complete in 2004.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
