Scottish out of town offices have seen a boom as organisations look for space away from the city centres, says a report compiled by Savills Scottish Office Market.
Due to a scarcity of adequate office space in the major cities of Scotland, alongside increasing rent prices, companies are increasingly opting to open office space away from the city centres.
The report says that office space take-up away from the primary business centres of Glasgow, Edinburgh and Aberdeen has risen by 4% in 2016’s first quarter, compared to that of 2015.
Savills believe this tendency will increase further as businesses will keep being attracted to the lower rents available in locations out of the major cities, with some cases seeing discounts of up to 50% on prime rents of £30 per square foot in comparison to city centre rents.
Head of Commercial Research at Savills, Mat Oakley, said that particularly in Glasgow and Edinburgh we are seeing the resurgence of the out of town office market, which he believes is mainly because of occupiers saving money on rent costs.
Due to this, the firm has predicted that the strongest rental increases in Scotland will be seen in Glasgow and Edinburgh’s out of town markets, where the next three years could see rent costs in the early £20’s.
The research indicates that there has been a significant increase in office space demand across all of Scotland in the last year.
In the first quarter of 2016, Edinburgh has enjoyed its second strongest period in terms of leasing activity since 2013, while Glasgow has seen around 300,0000 square foot of space leased in 2016’s first quarter alone, that’s over half the total amount of space let in the city in the whole of last year.
However, the report also indicates that this increased demand, along with more growth of employment, has resulted in a squeezed supply of space.