{"id":1620,"date":"2017-05-23T11:12:54","date_gmt":"2017-05-23T11:12:54","guid":{"rendered":"http:\/\/www.primefind.net\/latest\/?p=1620"},"modified":"2020-06-09T01:57:22","modified_gmt":"2020-06-09T01:57:22","slug":"office-space-in-edinburgh","status":"publish","type":"post","link":"https:\/\/primeofficespace.co.uk\/latest\/office-space-in-edinburgh\/","title":{"rendered":"The Cost of Renting Office Space In Edinburgh"},"content":{"rendered":"
\n

\"EdinburghEdinburgh\u00c2\u00a0has a thriving\u00c2\u00a0economy\u00c2\u00a0whose diversity and scope for growth attracts\u00c2\u00a0FTSE 100 companies and other large firms mainly in banking, insurance, finance, media, and technology.\u00c2\u00a0Since all\u00c2\u00a0these\u00c2\u00a0are office-based industry sectors,\u00c2\u00a0the demand for office space in the city is robust, and in fact Edinburgh is\u00c2\u00a0one of the six most important commercial property markets outside London.\u00c2\u00a0But how does demand affect office rental values in this Scottish city? Read on to find out.<\/p>\n<\/div>\n

\n

Trends\u00c2\u00a0Affecting Office Rental Prices\u00c2\u00a0In Edinburgh<\/strong><\/p>\n<\/div>\n

\n

The\u00c2\u00a0TMT sector has recently become the most important forces\u00c2\u00a0driving the growth of the local\u00c2\u00a0office\u00c2\u00a0market. During the first three months of 2017,\u00c2\u00a0this sector\u00c2\u00a0accounted for nearly 33 per cent of all office take-up in the city. Education is another key occupier of office space in the city, mainly due to the presence of four prestigious universities.<\/p>\n<\/div>\n

\n

With increasing demand from high-growth sectors comes diminishing availability,\u00c2\u00a0so scarcity may become drive office rental prices up\u00c2\u00a0within the next couple of years.\u00c2\u00a0Moreover, a considerable amount of lease expires in\u00c2\u00a0the\u00c2\u00a02017-2018 period is likely to cause spike in average rents.\u00c2\u00a0While\u00c2\u00a0rental increases\u00c2\u00a0are\u00c2\u00a0not\u00c2\u00a0expected to be\u00c2\u00a0too drastic,\u00c2\u00a0they may\u00c2\u00a0exceed the \u00a335 \/ square\u00c2\u00a0foot mark by the end of 2017.<\/p>\n<\/div>\n

\n

Edinburgh Office Prices By Area<\/strong><\/p>\n<\/div>\n

\n

According to researchers at Knight Frank, headline office rents across the city average \u00a333 \/ square\u00c2\u00a0foot.\u00c2\u00a0Incentives\u00c2\u00a0like rent-free period of 18 months for 10 year leases\u00c2\u00a0are common,\u00c2\u00a0which brings\u00c2\u00a0the\u00c2\u00a0net effective rental value\u00c2\u00a0down\u00c2\u00a0to \u00a328 \/ square\u00c2\u00a0foot.<\/p>\n<\/div>\n

\n

In the\u00c2\u00a0city centre\u00c2\u00a0(where\u00c2\u00a0office take-up\u00c2\u00a0rates typically average\u00c2\u00a0115,000\u00c2\u00a0square foot\u00c2\u00a0per quarter)\u00c2\u00a0the market is\u00c2\u00a0characterised by\u00c2\u00a0a\u00c2\u00a0very limited supply,\u00c2\u00a0especially\u00c2\u00a0in core locations\u00c2\u00a0like\u00c2\u00a0Quartermile\u00c2\u00a0and\u00c2\u00a0Charlotte Square,\u00c2\u00a0where\u00c2\u00a0rents exceed \u00a330 \/ square\u00c2\u00a0foot.<\/p>\n<\/div>\n

\n

A\u00c2\u00a0noticeable rental differential\u00c2\u00a0exists\u00c2\u00a0between city centre and\u00c2\u00a0out-of-town offices.\u00c2\u00a0The cost of the latter ranges\u00c2\u00a0between\u00c2\u00a0\u00a314\u00c2\u00a0and\u00c2\u00a0\u00a320 \/ square\u00c2\u00a0foot,\u00c2\u00a0with\u00c2\u00a0\u00a317\u00c2\u00a0being average. However,\u00c2\u00a0\u00c2\u00a0in the next couple of years\u00c2\u00a0\u00a320 \/\u00c2\u00a0square foot\u00c2\u00a0may become the norm\u00c2\u00a0for out-of-town properties. Changes in demand and availability mean that rental values\u00c2\u00a0are\u00c2\u00a0likely to rise,\u00c2\u00a0since an increasing\u00c2\u00a0number of\u00c2\u00a0occupiers\u00c2\u00a0are willing to\u00c2\u00a0consider an out-of-town location\u00c2\u00a0after not being able to find suitable space in the city.\u00c2\u00a0The most in-demand locations\u00c2\u00a0for this type of office space are\u00c2\u00a0Edinburgh Park\u00c2\u00a0and\u00c2\u00a0South\u00c2\u00a0Gyle\u00c2\u00a0Business Park.<\/p>\n<\/div>\n

\n

Edinburgh Office Prices By Property Typ<\/strong>e<\/p>\n<\/div>\n

\n

During 2016,\u00c2\u00a0the Edinburgh office market<\/a> experienced\u00c2\u00a0similar take up rates of\u00c2\u00a0Grade A\u00c2\u00a0and Grade B\u00c2\u00a0space\u00c2\u00a0.\u00c2\u00a0Currently, there are only\u00c2\u00a0365,000 square feet\u00c2\u00a0of Grade A space\u00c2\u00a0available,\u00c2\u00a0and the already\u00c2\u00a0pricey\u00c2\u00a0rental rates are expected to keep\u00c2\u00a0increasing.\u00c2\u00a0Some Grade A office (such as\u00c2\u00a0those in the\u00c2\u00a0Atria One\u00c2\u00a0development) have achieved\u00c2\u00a0record-high rents of \u00a333 \/ square\u00c2\u00a0foot.\u00c2\u00a0However,\u00c2\u00a0Grade A offices\u00c2\u00a0north of\u00c2\u00a0the\u00c2\u00a0Old Town (for instance in the\u00c2\u00a0EH7 area)\u00c2\u00a0are priced as low as\u00c2\u00a0\u00a312.50 \/ square\u00c2\u00a0feet.\u00c2\u00a0The cost of\u00c2\u00a0Grade B\u00c2\u00a0and\u00c2\u00a0refurbished\u00c2\u00a0offices\u00c2\u00a0varies depending on location, and it is possible to find\u00c2\u00a0reasonably priced properties\u00c2\u00a0(\u00a315 \/\u00c2\u00a0sq\u00c2\u00a0ft) in Leith and areas north of Saint Andrew Square.<\/p>\n<\/div>\n

\n

Coworking\u00c2\u00a0and shared\u00c2\u00a0office space usually starts\u00c2\u00a0at\u00c2\u00a0\u00a3240 \/ desk \/ month, going up to \u00a3360 \/ desk \/ month for higher priced packages that include access to meeting rooms, IT assistance, storage, and other perks.\u00c2\u00a0Fixed desks\u00c2\u00a0in shared offices average\u00c2\u00a0\u00a3250 to \u00a3290.\u00c2\u00a0Lastly, serviced and\u00c2\u00a0managed offices\u00c2\u00a0in the city\u00c2\u00a0centre\u00c2\u00a0are usually priced at\u00c2\u00a0\u00a3250 \/ desk,\u00c2\u00a0whereas in\u00c2\u00a0adjacent areas (such as Leith)\u00c2\u00a0they\u00c2\u00a0start at \u00a3130 per desk.\u00c2\u00a0In\u00c2\u00a0the\u00c2\u00a0EH3 area,\u00c2\u00a0serviced offices\u00c2\u00a0can be found under \u00a3130 \/ person \/ month,\u00c2\u00a0and in more exclusive areas, like\u00c2\u00a0Haymarket,\u00c2\u00a0they can go\u00c2\u00a0up to \u00a3550 \/ person \/ month.<\/p>\n

Sources:<\/div>\n
(1) https:\/\/sbnn.co.uk\/2017\/04\/20\/tech-media-telecoms-rise-edinburgh-early-2017\/<\/div>\n
(2) http:\/\/scotlandb2b.co.uk\/2017\/03\/24\/tech-firms-lead-edinburgh-office-takeover-heres-why\/<\/div>\n
(3) https:\/\/kfcontent.blob.core.windows.net\/research\/1148\/documents\/en\/2016-4112.pdf<\/div>\n
(4) http:\/\/www.gva.co.uk\/uploadedfiles\/GVA_UK_Research\/2017%20Big%20Nine%20Q1%202017.pdf<\/div>\n
(5) http:\/\/www.eyco.co.uk\/news\/news.php?id=248<\/div>\n
(6) http:\/\/pdf.euro.savills.co.uk\/uk\/office-reports\/spotlight-scottish-office-may-2016.pdf<\/div>\n
(7) http:\/\/www.cushmanwakefield.co.uk\/en-gb\/research-and-insight\/uk\/edinburgh-regional-office-report\/<\/div>\n
(8) http:\/\/pdf.euro.savills.co.uk\/uk\/office-reports\/spotlight-scottish-office-may-2016.pdf<\/div>\n
(9) https:\/\/codesk.uk\/<\/div>\n
(10) http:\/\/www.themeltingpotedinburgh.org.uk\/coworking-in-edinburgh\/fixed-desks\/<\/div>\n
(11) http:\/\/www.edinburghoffice.co.uk\/locations\/<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Edinburgh\u00c2\u00a0has a thriving\u00c2\u00a0economy\u00c2\u00a0whose diversity and scope for growth attracts\u00c2\u00a0FTSE 100 companies and other large firms mainly in banking, insurance, finance, media, and technology.\u00c2\u00a0Since all\u00c2\u00a0these\u00c2\u00a0are office-based industry sectors,\u00c2\u00a0the demand for office space in the city is robust, and in fact Edinburgh is\u00c2\u00a0one of the six most important commercial property markets outside London.\u00c2\u00a0But how does demand affect office rental values in this Scottish city? Read on to find out. Trends\u00c2\u00a0Affecting Office Rental Prices\u00c2\u00a0In Edinburgh The\u00c2\u00a0TMT sector has recently become the most important forces\u00c2\u00a0driving the growth of the local\u00c2\u00a0office\u00c2\u00a0market. During the first three months of 2017,\u00c2\u00a0this sector\u00c2\u00a0accounted for nearly 33 per cent of … Read More<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[91,188,202],"tags":[14,241,244,143,115,67],"_links":{"self":[{"href":"https:\/\/primeofficespace.co.uk\/latest\/wp-json\/wp\/v2\/posts\/1620"}],"collection":[{"href":"https:\/\/primeofficespace.co.uk\/latest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/primeofficespace.co.uk\/latest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/primeofficespace.co.uk\/latest\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/primeofficespace.co.uk\/latest\/wp-json\/wp\/v2\/comments?post=1620"}],"version-history":[{"count":14,"href":"https:\/\/primeofficespace.co.uk\/latest\/wp-json\/wp\/v2\/posts\/1620\/revisions"}],"predecessor-version":[{"id":1951,"href":"https:\/\/primeofficespace.co.uk\/latest\/wp-json\/wp\/v2\/posts\/1620\/revisions\/1951"}],"wp:attachment":[{"href":"https:\/\/primeofficespace.co.uk\/latest\/wp-json\/wp\/v2\/media?parent=1620"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/primeofficespace.co.uk\/latest\/wp-json\/wp\/v2\/categories?post=1620"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/primeofficespace.co.uk\/latest\/wp-json\/wp\/v2\/tags?post=1620"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}