New figures from global property giant Knight Frank show the office market in and around Aberdeen has enjoyed a buoyant start to 2022.
Take-up during the first quarter of this year is closing in on the total for the whole of 2021.
Knight Frank said 195,905sq ft of office space was transacted in the area during the first three months of this year.
This is compared to around 197,194sq ft in the previous 12 months.
At the beginning of the year we expected to exceed 200,000sq ft of take-up by the end of June, but we are very close to reaching that figure in just three months.”
Matt Park, partner, Knight Frank.
Knight Frank said it acted on deals representing more than half of the take-up figure for Q1 2022.
Business in 2022 has been boosted by Shell’s 100,000sq ft letting at the Silver Fin Building, on Union Street, which concluded in January.
The North Sea Transition Authority – formerly the Oil and Gas Authority – also took around 18,000sq ft at 1 Marischal Square during the first quarter.
Elsewhere in and around the city, energy services company Ponticelli secured 17,900sq ft at Abercrombie Court in Westhill.
Market confidence boosted by higher oil prices and busier city centre
Earlier this year Knight Frank said a cautious sense of optimism was returning to the Aberdeen market, supported by higher oil prices and more workers returning to the office.
Matt Park, partner in the Granite City office of Knight Frank, said: “Notwithstanding the uncertain wider economic picture, it has been a positive start to 2022 for the Aberdeen office market.
“At the beginning of the year we expected to exceed 200,000sq ft of take-up by the end of June, but we are very close to reaching that figure in just three months.”
Mr Park added: “The ongoing conflict in Ukraine, inflation being at its highest in 30 years, and rising interest rates will no doubt influence how the rest of the year progresses.
“But there are still grounds for optimism – more occupiers in Aberdeen are looking for space and, broadly speaking, their requirements seem to be larger.
“There is also a good level of activity for smaller requirements. These businesses are generally looking for flexible space and landlords that will work with them to provide accommodation that matches their requirements.
“All things being equal, we expect more companies to assess their options in the remainder of 2022, with a significant amount of stock available to them in the city.”
