Industrial tops investment league | T&A wins fit-outs
Industrial remains the star performer in Scotland’s commercial property sector with record levels of activity and demand outstripping supply in most areas, according to Ryden’s latest report.
However, it says developers must look to redevelopment and refurbishment of obsolete facilities as a faster way to satisfy demand offering potential for significant uplift in rents.
Demand for development sites also comes from house builders who are looking at large and peripheral locations to satisfy unit sales increases. This would normally push land values up, were it not for the significant increase in build costs.
In cities, the office property market in Glasgow and particularly in Edinburgh staged a recovery in 2021. Active occupiers are focused on top quality space with ESG credentials and future flexibility, to attract staff back into the workplaces.
This return of life to city centres is also important to retail and leisure occupiers who continue to struggle.
Glasgow city centre headline office rental reached £35.25 per sq ft at the new 177 Bothwell Street building, one of three new developments completing, and in Edinburgh space traded at £38 per sq ft, or higher on some specific floors.
The lack of supply of Grade A office space in Edinburgh city centre is reaching critical levels.
Dr Mark Robertson, Ryden managing partner and Scottish Property Review editor, commented: “Economic output appears to be reaching pre-pandemic levels but the societal and economic changes are still being felt through some property market sectors with retail continuing to be hit while logistics reap the benefits.
“The property investment market in Scotland accelerated during the latter half of 2021 as investors re-entered the market, particularly for industrial, city centre trophy offices and retail warehousing. The wall of money allocated to property as an asset class is expected to sustain this investment activity through 2022.”
T&A secures office fit-outs
Construction and property consultancy Thomas & Adamson has been appointed by law firms Shepherd and Wedderburn and Morton Fraser to deliver fit out 36,000 sq ft of new offices in Edinburgh and Glasgow City Centre.
T&A will provide project and cost management services for prime office accommodation in prestigious Haymarket Edinburgh and 1 West Regent Street, Glasgow.
Work will begin mid-year on Shepherd and Wedderburn’s 30,000 sq ft premises over two floors at One Haymarket, the latest mixed use regeneration development in Edinburgh.
The Glasgow development involves 6,440 sq ft on behalf of Morton Fraser, with new formal client meeting rooms, informal meeting space and collaboration space for staff.