Thursday 29 September 2011

Soar away Aberdeen

As long as the oil price remains high, so the office market in Aberdeen is designed to set the pace in Scotland.

That is the message from the first half when take up soared to 38,535 sq.metres (414,804 sq.ft.), substantially exceeding the total for each of the previous two years. Added to this, rents sit at £333.68 a sq.metre (£31 a sq.ft.), which is above that for all UK regional cities.

As an indicator of future growth, only 8% of the 77,315 sq.metres (832,242 sq.ft.) of available stock is newly completed Grade A. The clear message is that if you want new space, then go for a pre let.

Mark McQueen of CBRE said: “The office market is in extremely good shape at the moment due to some significant transactions in the first quarter. It is very encouraging (that 2010 figures were exceeded in the first half) in the light of the challenges of recent years.

The market will remain buoyant for the remainder of the year.” The industrial market is also buoyant. Allied International, a distributor and stock manager of fittings, has leased a 1,342 sq.metres (14,446 sq.ft.) unit with head tenant Iron Mountain on the Altens Industrial Estate, Minto Avenue, Dyce.

Craig Watson of Jones Lang LaSalle, who acted for Iron Mountain together with FG Burnett commented: “It is clear that supply is tight in Aberdeen and occupiers have limited choice. This sub letting was achieved early on in the marketing process at the passing rent, helping Iron Mountain to significantly reduce their ongoing liabilities as part of their relocation to the north of the city.”

Also in Aberdeen, MWB Group Holdings, has done a sale and leaseback deal on its Malmaison hotel development for £16.1 million. The property has been sold and will be leased back from CIP Property on behalf of Citibank International as trustees for Aviva Investors Property Trust. Malmaison will run the hotel on a 35 year lease.


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