A new report from Savills suggests headline office space rents in Edinburgh could rise dramatically towards the end of 2012
The real estate advisor says a lack of supply and increased demand could force rents in the city back to peak levels
The firm suggests that an increase in demand and a lack of supply could force upward pressure on headline rents in the city later this year. Currently standing at £27.50 per sq ft, office space rents are expected to rise steadily to £30 per sq ft in the next 12 months.
Commenting on the firm's latest report, Savills Keith Dobson said: "While occupier commitment did weaken in the second half of 2011, this has not diminished the number of high profile requirements for prime space in Edinburgh. Furthermore, there is an increasingly widespread perception among Edinburgh's major occupiers that a shortage of suitable space is imminent and we believe that this will stimulate those who have lease expiries between 2014 and 2016 to try and secure suitable premises as soon as possible."
According to the firm, Edinburgh is expected to see an increase in interest from businesses in the banking and financial sector, as well as the telecoms, media and technology sector throughout the course of the yea
The firm goes on to say that the supply shortage in Edinburgh will be intensified by an increasing amount of conversions from office to hotel or quasi-residential useage. As a result of this our central forecast for Edinburgh is a steady fall in total availability with a sharper fall in grade A availability over the next five years.
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