Healthy demand expected
Contractors invited to tender for Capital Square
Hermes Real Estate and Andrew McParland of Parlison Properties say the winning contractor will be appointed in in August with a view to being on-site by the third quarter this year.
The building, over eight levels, will be completed in the fourth quarter of 2018, and will be the last project providing large floorspace in the Exchange District.
Recent reports from CBRE and Montagu Evans, Capital Square’s joint letting agents, have revealed that the city is short of offices.
Healthy demand is therefore expected with various lease breaks and expiries falling in the next two years and several large live requirements.
The shortage of supply and strong demand, together with build cost inflation, is resulting in rental levels increasing significantly in line with other key provincial cities. The agents also predict a substantial reduction in tenant incentives.
With these issues in mind, Hermes is developing Capital Square speculatively and believes it will be key for Edinburgh in addressing this problem.
It will be built on a combined site encompassing the former Skypark car park, land purchased from the Sheraton hotel and the adjacent Capital House’s eastern surface car parking site.
Hermes Real Estate has placed the car park under offer with the lease expected to exchange imminently.
The development is one of the first in Edinburgh to make use of drone technology to take a series of photographs showing views from each angle and level of the proposed building.