Demand for new industrial space in Aberdeen remains strong, despite low oil prices slowing energy industry growth, commercial property experts said yesterday.
The key players behind one of the Granite City’s many new business parks, D2 near Aberdeen International Airport (AIA), were upbeat about the prospects for new tenants signing up for the remaining available space.
Katherine Monro, a partner in the Aberdeen office of joint letting agent Knight Frank, told the Press and Journal Europe’s energy capital had experience of getting over downturns in the oil and gas industry – and would do so again.
While the buoyant office property market of recent years is quieter now, there is still lots of demand for industrial space she said, adding that more than 20 acres of available serviced land at D2 were attracting plenty of interest.
New offices springing up around the city as a result of energy industry growth before oil prices took a dive are expected to accommodate expansion in better times ahead.
“These occupiers are not going to go away,” said Ms Monro.
She was speaking at the official civic launch of Miller Developments’ D2 project, where building work is under way on premises for three multinationals.
BP, Asco and Emerson Process Management have signed up for the new buildings, while a planning application for a new hotel at the £400million business park is imminent.
A major shareholder in Norwegian conglomerate Aker Solutions acquired the first phase at D2 in 2013 and its office development for Aker completes in February 2015.
Miller Developments joint managing director David Milloy said: “D2 has established itself as a prime location for business in Aberdeen.
“We have attracted some major names in the oil and gas industry, and as well as offering bespoke packages of facilities we are also enhancing the amenities we are offering on site with a hotel development in the pipeline.
Planning consent was granted in November 2012 for 1.4million square feet of office, industrial and distribution space at D2, making it one of the biggest mixed use developments in Scotland for many years.
D2 is being developed in three phases, with plans including a link to the new road that will connect AIA to the new city bypass.
Aberdeen City Council leader Jenny Laing said: “Miller Developments’ substantial investment in Aberdeen’s long-term economic future is a clear signal of strong business confidence in the city and the surrounding region.
“The success of the development proves that Aberdeen’s broad-based energy economy will continue to sustain this area for many years to come.
“D2 is destined to be at the heart of this city’s ongoing success story and provide high-quality jobs and services long into the future.”