2024-02-02-莱坊-UK_Cities_Edinburgh_Q4_2023_1页_294kb

Edinburgh Office Market Summary - Q4 2023

Key Market Activity

• Quarterly Overview: Q4 2023 shows continued activity in the Edinburgh regional office market, with key metrics indicating demand outstripping supply in some categories.
• Take Up: Office take-up reached 120,515 sq ft, reflecting strong occupier demand, with Professional Services being the most active sector.
• Vacancy Rate: Grade A vacancy rate remained steady at 10.35%, slightly higher than Q3 levels, but overall demand kept pressure on landlords.
• Prime Rent: Fixed at £46.50 per sq ft for Q4 2023, an increase from Q3's £43.00, aligning with market forecasts and institutional investor perspectives.
• Prime Yield: Stabilized at 4% for the fourth quarter, with a 10-year context showing volatility but current stability.
• Deals: Average of 4 deals recorded, including one notable transaction: 16,435 sq ft sold at Haymarket Square for £19m, involving vendor Patrizia and purchaser Tristan Capital Partners.

Investor and Institutional Insights

• Investor yields remain at 4% for Q4, unchanged from recent quarters, with UK institutions maintaining steady interest.
• Forecast for 2024 suggests slight increases in prime yields and occupancy rates.

Overall Trends

• Low vacancy and high take-up indicate a resilient market, though speculative investments face competition from occupier-driven demand.
• Grade A space utilization experiences are positive, with potential for further growth in prime returns.