CBRE has released its latest figures on the Aberdeen office market during the second quarter of 2022.
Buoyed by the rise in oil price, the total take-up in the first half of the year was 256,426 sq ft, a 361% rise from the same period in 2021. Q2’s figure of 60,521 sq ft also represents the strongest Q2 performance for office take-up since the start of the CV19 pandemic, further indicating that Aberdeen is starting to recover now that CV19 restraints have been lifted.
The largest deal of the quarter was at The Capitol, where serviced office provider Orega took 15,300 sq ft, retaining its presence on Union Street. Other notable deals included Craig International taking 9,149 sq ft at Tern Place, Bridge of Don, whilst Ashtead Technologies agreed to sub-let 5,648 sq ft at Cumberland House in Westhill.
Encouragement should also be taken from the city’s continued falling office availability, with supply now sitting at 2.6m sq ft, down 3% from the previous quarter and down 9.21% from the year-on-year figure. Over the past couple of years, Aberdeen has suffered from a high office vacancy rate, so it’s reassuring to see that rate continue to fall. As always, Grade A space within the city remains in shorter supply, with it sitting at approximately 300,000 sq ft, just 2.93% of the total space, as the flight for best-in-class space continues within the Granite City. The limitation on Grade A stock will also encourage more landlords to refurbish their existing stock to meet the demand of occupiers, particularly with approximately 200,000 sq ft of active occupier requirements out on the market, many of which are insisting on best-in-class space.
Amy Tyler, Associate Director from CBRE in Aberdeen, said: “Not since 2015 has Aberdeen’s office market witnessed such high levels of occupier take-up in the first six months of the year. The city has always been, and will continue to remain, an attractive location for occupiers to be based in.
“As the world migrates towards renewable energies there is perhaps no city better placed to embrace this change, with Aberdeen already a leading figure in the development of sustainable energy. Looking ahead, we envisage there being a substantial increase in demand for office space within this sector, especially as the city remains a great place to live and work.”