Edinburgh Office Rentals Looking Good
June 10 2008
Jones Lang Lasalle claim today (Tuesday) that the Edinburgh office market will favour tenants in the medium term. A series of new development completions coupled with more benign rental increases, and the predicted fall in supply of Grade A office accommodation will all contribute to a pro-tenant climate, according to new research they have undertaken.
The turnaround will see Edinburgh and most other markets across Europe move towards more balanced market conditions or possibly favouring tenants over the next five years, they say.
Ben Reed, director of Jones Lang LaSalle Scotland, said further rental growth is expected in the Edinburgh office market, although this is expected to slow. In central Edinburgh, a number of large office developments are due to be completed next year including Kenmore Property Group¹s Westport 102, Scottish Widows Investment Partnership¹s Exchange Place, and The Cube in Leith Street.
"The key for any company or organisation is to plan any relocations well ahead of the lease expiry so that they can take advantage of opportunities in the market," he said.
"In current times of economic uncertainty and subdued growth, we will see the real estate market beginning to turn in favour of tenants."
Although rental costs are still projected to grow in Edinburgh, Jones Lang LaSalle anticipates a marked slow-down in the rate of growth compared to the level seen in 2007.
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