Knight Frank: Aberdeen office market sees ‘relatively positive’ first half

Knight Frank: Aberdeen office market sees ‘relatively positive’ first half

The office market in Aberdeen has seen a stable recovery, from the effects of the pandemic, in a relatively positive first half. Last quarter with another 60,000 sq. ft. of space has been transacted, according to Knight Frank.

The independent commercial property consultancy found that office deal activity for the last three months has taken the total take-up for the first half of 2022 to 250,000 sq. ft. – a substantial increase on the 55,597 sq. ft. let in the equivalent period last year.

April to June’s 60,000 sq. ft. was also more than double the 26,695 sq. ft. transacted during the same period in 2021. The biggest deal of last quarter was Orega’s agreement to manage 15,000 sq. ft. at Aberdeen’s Silver Fin Building.

Eric Shearer, head of office at Knight Frank Aberdeen, said: “It’s been a relatively positive first half to the year, with Shell’s deal at the Silver Fin Building giving a real boost to the office market.

“While there is typically a lull as we head into the summer holiday season, there are enough deals on the horizon for the second half to remain cautiously optimistic about the six months ahead.

“The oil price is helping to buoy activity in the industrial market, but it is yet to truly filter through to offices. We hope that will change in the remainder of 2022 and into 2023, with the oil price forecast to remain high for some time yet, acting as a further catalyst to the office market’s recovery.”

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