Demand for office space remains in rude health

Demand for office space north of the Border remains strong, with the shortage of high-grade stock set to support rental growth, a new report reveals.

The study by property investor M&G Real Estate suggests that office take-up is being driven by domestic demand which has proven “buoyant”, despite the ongoing Brexit process.

Regional office markets outside London, including Scotland, are being boosted by major infrastructure projects, the regeneration of city centres and improved office stock“with a greater emphasis on facilitating work life balance”, the report notes.

Aaron Pope, director, asset management, at M&G Real Estate, said: “M&G Real Estate’s decision to invest in speculative developments at Quartermile Three in Edinburgh and 1 West Regent Street in Glasgow was underpinned by the lack of Grade A space available in Scotland.

“The record rents achieved in the latter highlight the opportunity available in both cities.”