Property experts have reported a “relatively subdued” start to the year overall for the office market in Aberdeen.
But they have also highlighted a “renaissance” for renovated buildings on Albyn Place in the west end.
CBRE said take-up of office space in Aberdeen during the second quarter of the year totalled 54,584sq ft.
This is a slight increase on the previous quarter’s 54,009sq ft figure and brings the total for the first half of 2023 to 108,593sq ft, the company said.
This year’s figures follow a a strong market in 2022
It was around this time last year that CBRE was reporting the strongest Aberdeen office market since 2015. Deals struck during the first six months of 2022 totalled 256,426sq ft.
Amy Tyler, associate director in CBRE’s Aberdeen office, said: “We’ve witnessed a relatively subdued start to 2023, however we’re anticipating some larger lettings in the second half of the year.
“Albyn Place has experienced a renaissance in 2023. Genesis (energy industry consultants), Rosen (energy services) and Mods Management (oil and gas technology) have recently relocated to the street, all to traditional office buildings which have benefitted from significant renovation. This demonstrates there is occupier demand if landlords are prepared to invest in high quality refurbishment of prime west end buildings.”
Genesis’ relocation from Westhill to 26 Albyn Place was the largest Aberdeen office deal of the second quarter. The 14,100sq ft office has undergone a major refurbishment under landlord Tilestamp.
Most second quarter deals were in the sub 5,000sq ft market.
CBRE said there is still activity and demand but occupiers are taking less space.
Fewer empty offices ‘encouraging’
Continued falling office availability in the city is encouraging, the firm added.
Supply at the end of June totalled about 2.5 million sq ft, down 5% from the previous quarter. CBRE said: “Grade A space… remains in shorter supply, approximately 209,362sq ft, just 8% of the total space, as the requirement for best-in-class accommodation continues in the Granite City.
