Edinburgh’s biggest vacant office building hits market
● 525 Ferry Road was home to State Street for 15 years
Edinburgh’s largest vacant office building, formerly home to financial services giant State Street, will soon be available to let.
Spanning about 110,000 square feet, 525 Ferry Road was home to State Street for more than 15 years, but the Us-headquartered group said in April that it was moving its Edinburgh operations to the city’s Quartermile development.
Following the relocation, joint commercial property agents JLL and Cuthbert White have now been instructed to start the hunt for a new “big ticket occupier”.
Cameron Stott, director of office agency for JLL in Scotland, said: “In a market where supply has been squeezed, 525 offers a rare opportunity for a company to secure a large open plan, fully serviced, office building.
“Given its size, and location, we also believe that it offers an attractive options for an inward investor seeking to expand into the city.”
Cuthbert White co-founder Nick White added: “With rents increasing in the city centre resulting in occupancy costs of over £45 per square foot, 525 will be able to offer occupiers accommodation with an overall occupancy cost, taking into account rent, rates and service charges, of around £30 per square foot.”
Thegradeabuilding,owned by a property fund managed by Cologne-based Corpus Sireo, hits the market at a time when supply in Edinburgh city centre remains tight with only a limited number of new developments in the pipeline.
NFU’S 80 George Street is one of the few major refurbishments due to complete in mid2018 that can accommodate a requirement up to 40,000 sq ft, while The Mint Building, West Registers Street, totalling 60,000 sq ft, is one of only two schemes that will deliver new-build offices.
Last week a report by property firm Savills revealed that office leasing activity for the first half of 2017, across Aberdeen, Edinburgh and Glasgow, reached 1.4 million sq ft – 20 per cent above the five-year average for a six-month period.
The firm’s Scottish Office Market Spotlight noted that the figure had been boosted by accelerated leasing activity in Aberdeen and the strongest office take-up ever recorded in Edinburgh.
Rod Leslie at Savills Scotland said: “Investors’ improving sentiment towards Scotland relative to the rest of UK points to higher investment volumes and we are witnessing yield compression in certain segments of the market.” The chief executive of Hornby is to step down after Phoenix Asset Management seized control of the toymaker and commenced a review of its strategy. The firm, which also owns Airfix and Scalextric, said that Steve Cooke, who has only been in the role since April last year, will leave at an unspecified date in the future. The departure was “mutually agreed”, Hornby added, and Cooke will remain in place for a transitional period. Phoenix took full control earlier this year.