Scotland In My View: By Chris Ion Graham & Sibbald Aberdeen
What are you seeing in the industrial market in Aberdeen at present? The word in the Aberdeen Industrial Market is “compromise”. For occupiers seeking modern detached facilities with dedicated yards and car parking of any size, there will almost certainly have to be an element of compromise in the decision-making process. Be it warehouse to office ratios, internal configuration, site layout, specification or rent.
Chris Ion
There does continue to be a ready supply of traditional industrial terraced stock, which has seen differing levels of refurbishment. Those refurbished terraced units that can offer some form of yard space will often let reasonably quickly but for those that don’t, they can sit on the market.
Why is there a lack of modern detached industrial units? Strong take-up in 2022 (926,000 sq. ft) and 2023 (839,000 sq. ft) driven largely by the local energy industry, off the back of a relatively stable oil prices ($70+ per barrel) saw good demand for the best-in-class industrial units. Coupled with almost a complete lack of new build development due to challenging economic feasibility, has led to a number of unsatisfied requirements in the market at present. Indeed, the take-up for 2024 is likely to be significantly lower than the previous two years because of the right product just simply not being available.
What challenges do you foresee ahead for occupiers in the market? Occupiers will continue to have to compromise on what they are seeking. As a result, some will be forced to stay in their current properties, and this in turn will benefit their landlords with longer leases and/or higher rents being secured. Incentive periods have already reduced across the market over the past two years and rents are beginning to move upwards, a first in more than 10+ years for the Aberdeen market.
With decreasing levels of supply, it is even more important occupiers take professional advice early in the process and this goes for whether they wish to
UNITS 01 & 02 MINTO AVENUE
remain in their current premises beyond lease expiry or seeking to relocate. Graham + Sibbald recently acted for an occupier client in securing a 28,647 sq. ft refurbished industrial unit – the largest industrial letting of 2024 thus far.
What are the opportunities and challenges for developers/investors in the market? With the costs of construction remaining stubbornly high in the North East, feasibility of new build projects will only be viable where there is confidence in achieving significantly higher rents to strong covenants. This will restrict speculative and design-and-build projects but with an increased importance by occupiers on green credentials and ESG features, this adds another factor to increasingly favouring new build development.
Graham + Sibbald are jointly marketing the only speculative new build industrial unit in the market at present in Westhill which comprises 4,400 sq. ft with dedicated yard/parking and an EPC ‘A’ rating. The second-hand refurbishment market is seen as a real opportunity for developers to capitalise upon. Although these refurbishment costs are still significant, they can make development more feasible and provide much needed good quality industrial space to the market.
Graham + Sibbald recently advised a client on the acquisition, refurbishment and marketing of a terrace of eight industrial units in Dyce with dedicated yard / parking and EPC ‘A’ ratings. Working alongside our joint agents we had occupiers secured for all the units within four months of practical completion.
Graham + Sibbald have an experienced commercial Agency Team providing advice and representation on all issues relating to commercial property acquisitions and disposals for occupiers, landlords, developers and investors.
Chris Ion Partner
Chris.ion@
g-s.co.uk 07717 425298
TO LET / MAYSELL MintoAvenue, Altens ,Aberdeen ,AB123JZ
Unit 01 : 1,361.00 sq. m (14,650 sq. ft) Unit 02 : 1,004.00 sq. m (11,291 sq. ft)
Viewings.
To arrange a viewing or for further information, please contact the letting agents: Chris Ion
07717 425298
chris.ion@
g-s.co.uk
Emma Gilbert 07717 441280
emma.gilbert@
g-s.co.uk
Unit 02
Unit 01
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60
