Office take-up in Aberdeen almost doubled between the second and third quarters of 2021, according to an analysis by Knight Frank.
The independent commercial property consultancy said a sustained improvement in oil prices and occupiers returning to the workplace helped buoy activity.
Knight Frank found office take-up between July and September reached 51,316sq ft, up around 97% on the near-26,000sq ft recorded during the second quarter of 2021.
It was also markedly ahead of the first quarter’s total of 28,000sq ft.
“There is a cautious and tentative optimism returning to the market, with several deals likely to conclude by the end of 2021.”
Matthew Park, Knight Frank.
Take-up in the latest quarter was boosted by Mental Health Aberdeen’s move to Langstane House, occupying nearly 12,000sq ft.
Other deals to conclude during the period included law firm Shepherd and Wedderburn (S&W)’s planned move into 37 Albyn Place and global transport and logistics company Kuehne + Nagel taking around 3,500sq ft at Aberdeen International Business Park in Dyce.
Although the third quarter take-up figure was down on the same period in 2020, when around 80,000sq ft of office space was transacted, Knight Frank expects more significant deals during the final three months of 2021 in a positive end to the year.
Oil prices a key factor
Matthew Park, office agency partner for Knight Frank in Aberdeen, said: “The last three months have seen an upturn in activity, as more occupiers return to the office and business starts to get back to some sort of normality.
“The oil price is still a big influence on the commercial property market in Aberdeen and the fact it has stayed above $60 per barrel for the past six months has also helped.
“There is a cautious and tentative optimism returning to the market, with several deals likely to conclude by the end of 2021.”
Formerly the Granite City base of professional services giant KPMG, which relocated to Marischal Square, 37 Albyn Place is now fully let as a result of S&W’s deal and accountancy firm Azets taking a further 2,000sq ft of space at the same address.
Among other big deals announced during the third quarter, energy giant Shell revealed it was moving out of its current North Sea base in Tullos, Aberdeen, and into the Silver Fin building in the city centre.
The lease for Shell’s new premises starts next year, with the company expected to occupy six floors at Silver Fin.
More than 1,000 Shell staff will use the building, but because of flexible working they will not all be there at the same time.
Shell confirmed earlier this year it was on the hunt for a new home for its Aberdeen workforce, saying its team at Tullos was working in a complex “from the 70s”.
Others taking up new space
Fellow energy giant BP said last December it would up sticks from its North Sea base in Dyce.
It is moving into a smaller facility at Aberdeen International Business Park.
Earlier this month business consultancy Interpath Advisory announced it had chosen Aberdeen for its second Scottish office location, with its chief executive, Blair Nimmo, labelling the city an “important market”.
Interpath, founded in May 2021 following the sale of KPMG’s UK restructuring practice, is also moving into the Silver Fin building, on Union Street.
