EdinbuRgh
PulsE
CommerCial reality. Nor have they seen an increase
Edinburgh traditionally has a reputation interest in buyers. He believes this to be
for being one of Europe’s main financial because purchasers are delaying to see
and business centres, with excellent whether better deals appear in the future.
transport links to Europe and the rest of “Cash buyers are being canny/choosey/
the UK and it is this that has ensured a pragmatic, depending on your point of
steady commercial property market. view. Why rush to buy now when better
However, the city has recently suffered opportunities may appear in the next 12
from the tightening economic climate and In our experience months?” he points out.
demand has dropped significantly over the
last six months with supply increasing due
a mixture of rent
When asked if prices were up or down
on last year, Shaun Vigers felt that the
to speculative developments completing
free and capital
picture was unclear. “What is selling is
and occupiers downsizing. With many
companies focusing on occupational costs,
contribution incentives
selling very well. What is not selling never
really gets started. We are not missing a
the majority of commercial transactions
are likely to seek affordable good quality
are working the best.’
target/reserve by the odd thousand and
have had lots sell at a significantly higher
stock which is rare in central Edinburgh. Cameron stott, Jones lang lasalle price than expected recently. There is no
Jones Lang LaSalle report that there is market for the ‘unloved’ lots – full stop.”
a downward pressure on rental levels Clarendon House, in George Street, 35,000 Mr Vigers continues, “Properties offered
particularly second hand spaces and sq ft offices of high quality accommodation have mainly been commercial property
accommodation on peripheral locations. in Edinburgh’s Georgian New Town. with about 60 per cent to 70 per cent
Says Director Cameron Stott, “Flexible “There hasn’t been a building of this size reaching or exceeding their reserve. We
incentive packages being offered to and quality available on George Street for normally sell between 60 per cent and 70
occupiers has increased significantly years,” says Douglas Gardiner, director of per cent on auction days and between five
especially if the occupier is a sound Atisreal. There are four large city centre per cent and 10 per cent of unsold lots get
covenant and prepared to take a medium office developments due to complete sold soon after auction.”
to long term lease.” during 2009 – Exchange Place on Semple SVA Property Auctions report that they
Rent-free, stepped rent, capital Street, Westport House, Leith Street and are seeing minimal repossessed properties
contributions, lease flexibility are some of Quartermile 6. at the moment. Mr Vigers explains:
the incentives being offered by commercial “Scotland is not yet seeing the flood of
landlords. “In our experience a mixture of auCtions repossessed properties which the media
rent free and capital contribution Property auction success rates have seems to be predicting.”
incentives are working the best,” says dropped with prices dipping and buyers SVA Property Auctions anticipate
Cameron Stott. Jones Lang LaSalle believes being more cautious, but like all property growth in the auction market over the next
it will take 12-24 months before the transactions at the moment, if the property couple of years for both the best and worst
commercial property market sees a is marketed with a realistic guide price and reasons. Shaun Vigers comments:
meaningful recovery. However the lack of reserve, there are still willing buyers eager “Auction as a way of selling is becoming
new supply over the next two years within to raise their hands. ever more popular; we anticipate more
the city centre may help the speed of Auctioneers believe that investors are sellers and buyers realising the advantages
recovery in the office market. beginning to turn their attention back to of selling at auction over the traditional
The company has given a few examples the property market and there are private treaty method.”
of recent transactions in the city. Tesco encouraging signs of improved confidence
Personal Finance has acquired a 47,787 sq with yields beginning to firm although lack
www.propertydrum.com/articles/
ft office development at Haymarket on a 15 of liquidity generally is holding back
pulseedinburgh. Add your comments
year lease; prime office rents in central recovery. Shaun Vigers, Director/
Edinburgh are stable at £307 sq m. Auctioneer of SVA Property Auctions in
A rare opportunity for refurbished office Edinburgh says that they have not really
accommodation has recently come about seen an increase in the numbers of
in the centre of Edinburgh. Acting on properties put up for auction this year;
behalf of Mapeley Estates Ltd, Knight rather the company attempting to restrict
Frank and Atisreal have recently been the acceptance of too many lots where
appointed as joint letting agents to market vendor expectations significantly exceed
av. asking PriCes by tyPe in edinburgh (£’s) Scott-Moncrieff,
mar 2008 mar 2009 Change
a professional services
firm, has signed a 15-year
Detached 396,433 456,378 +15 per cent
lease with developers
Semi 234,136 266,385 +14 per cent
Scottish Widows
Terraced 248,838 289,002 +6 per cent
Investment Partnership
Flat 198,583 201,639 -7 per cent
to occupy 17,700 sq ft at
All 234,714 261,060 +2 per cent
Exchange Place in July
PROPERTYdrum JULY-AUGUST 2009 31
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