Aberdeen’s office market is on course to exceed 400,000 sq. ft. of take-up during 2022, despite take-up easing in the third quarter, according to Knight Frank.
The independent commercial property consultancy said that 47,926 sq. ft. of office space was transacted in the Granite City between July and September. Combined with the 195,905 sq. ft. and 60,521 sq. ft. during the first two quarters, respectively, take-up for 2022 so far has reached 304,352 sq. ft.
The largest deal of the third quarter of 2022 was Dolphin Drilling securing 9,000 sq. ft. of office space at D2 Business Park in Dyce, as the continuing high price of oil boosted offshore activity.
With several transactions already underway and likely to conclude next quarter, Knight Frank predicted Aberdeen will breach 400,000 sq. ft. of office deals by the end of the year– a significant increase on the 197,000 sq. ft. recorded during 2021.
Matthew Park, partner at Knight Frank Aberdeen, said: “Although take-up slowed, there were 19 deals concluded in the third quarter – office activity so far in 2022 demonstrates that Aberdeen is bouncing back from the effects of the Covid-19 pandemic. There are enough transactions in the pipeline to believe that we can surpass 400,000 sq. ft. for the year, which would be more than double 2021’s total.
“The sustained high oil price at around $100 per barrel and the prospect of more than 100 new North Sea licenses being awarded, to boost domestic oil and gas production, in the next licensing round is trickling through into property deals, with more oil services and drilling companies issuing contract-led requirements. All things being equal, we would expect that to continue in the final quarter and into 2023.”