Aberdeen’s office market is witnessing a “flight to quality” as supply continues to outstrip demand, a business gathering in the city heard yesterday.
Dan Smith, Granite City-based director in the commercial agency team at Savills, said: “Lease events continue to underpin slowly improving tenant demand.
“Aberdeen’s office market is also fuelled by attractive incentive packages … unseen in recent times.
“With more options available to occupiers, compared to the unprecedented supply lows of 2013, we are seeing a flight to quality.”
Speaking at a Savills Scottish property outlook event at The Chester Hotel, he added: “Any market downturn creates opportunity.
“The long overdue change of use of unfit-for-purpose, obsolete and uneconomic office stock can now take place, while the neglected industrial market, which had failed to compete with office rents on employment land in recent years, can be properly serviced.”
Mr Smith said yesterday’s Autumn Statement meant there was “one less uncertainty” for the market in Aberdeen.
He added: “We have grown used to working in uncertain times around the bobbing price of Brent crude oil, the Scottish independence referendum – and the prospect of a second – and the implications of Brexit.”
Simpson Buglass, head of Savills’ Aberdeen office, said last night the £250million Aberdeen City Region Deal was likely to have a “knock-on positive impact” on the local commercial property market.