North Sea Boom Fuels Demand for Aberdeen Office Space

Investor interest in Aberdeen office space has surged, following a boom in the North Sea oil and gas industry in the first half of the year.

A report by property consultancy CBRE shows that 287,463 sq ft was acquired in Aberdeen in the first six months of 2013, lifting demand 8% above take-up in the last half of 2012.

Take-up has also increased in Glasgow and Edinburgh, the figures show.

CBRE has said the rising demand is a due to oil and service industry companies seeking out new head offices closer to the North Sea. Specific space requirements have aided investor interest in second-hand space, as well as the consistently high price of Brent Crude oil.

Research found total available space in Aberdeen had remained relatively stable, though the amount of grade A space has decreased as a result of first-half deals. Noting what it believes to be a low-level supply of grade A space, CBRE said it expects prime office rents to increase from the current average of £31.50 per sq ft.

An increase in city centre development, as well as out of town office space, is now expected in the second half of the year.

A number of projects are already underway to meet demand, including the 40-acre Aberdeen International Business Park, in Dyce.