Easing political worries boost office investment

Fading indyref2 fears have seen investment into Scottish offices nearly double (up 96 per cent) on the historical first quarter average volume with £342 million transacted in Q1 2018, according to latest research from commercial property advisors Savills.

The long-term average is £174m. “Strong investor demand for Edinburgh against a lack of opportunities sees prices continue to inch up”, notes the firm, with prime yields rising 0.25 per cent to 5 per cent in the first three months of 2018.

Savills said it suggested the Scottish capital was now “on a par with Leeds and Bristol for the best office space”.

Mark Fleming, investment team boss at Savills Scotland, commented: “(A) key determinants of yields in Scotland’s office market is the political environment and as a second Independence referendum looks less likely we are seeing ever more investors looking to buy across Edinburgh, Glasgow and Aberdeen.”