THE take-up of office space in Aberdeen roared back in 2018 thanks to the recovery of oil prices, writes Scott Wright.
Research by property firm Savills has revealed a 40 per cent increase in the number of office lettings last year compared with 2017, taking the total office take-up in the city to 388,227 sq ft over the year. There were 94 lettings in 2018, Savills said, up from 68 in 2017 and almost double the number seen in 2015 – the year immediately after the oil price crash.
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Dan Smith, head of Savills Aberdeen, said: “An increase in the number of deals demonstrates strengthening levels of stability in Aberdeen’s office market with a greater number of smaller deals indicating a market less susceptible to fluctuation from large individual lettings.
“Despite a divergence of sectors following the oil crash, Aberdeen’s economic reliance on oil and gas industries remains and therefore when oil prices increase, take-up and investment volumes also improve. We consequently expect Aberdeen to see significantly higher levels of office take-up during 2019.”
Meanwhile, property firm JLL warned Brexit uncertainty is likely to reduce activity in the Scottish commercial property market this year, after investment hit a record £2.5 billion in 2018. The firm’s Chris Macfarlane, said some buyers will adopt a “wait and see” approach.
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