Edinburgh’s largest single office building is undergoing a major refurbishment to meet unprecedented demand in the capital, where vacancy levels have hit a record low.
One Lochrin Square, the former site of Scotmid HQ, is due for completion in December, and will be the only self-contained building of its size and scale to reach the market for the next 12 months.
Vacancy levels across the capital have fallen to 4.7 per cent in 2016, a 17 per cent decrease compared with the same time last year according to JLL.
Totalling 62,416 sq ft of contemporary Grade A office space over five floors, UBS Asset Management, on behalf of One Lochrin Square’s owners, is creating a new and enlarged entrance and reception as well as undertaking a speculative ‘defurbishment’ on the ground floor – a new property trend which provides stripped back, attic style office accommodation to attract TMT occupiers. This finish is commonplace in London but has never been delivered in Edinburgh. The four upper floors will be finished to a traditional landlord’s Grade A specification.
Reflecting the rapid growth of Edinburgh’s booming TMT sector, tech companies have accounted for 30 per cent of all Edinburgh office take up so far this year, followed by Professional Services at 21 per cent.
Until Quartermile 3 completes in December 2017, the only other single building opportunity of scale in Edinburgh is Capital House totalling 54,600 sq ft.
Marketed by JLL and Knight Frank using one of Edinburgh’s first social media-led commercial property campaigns, passers-by are encouraged to tweet selfies using the building’s hoardings to signify which mood they are in using hashtag #1LSforall.
Located in the heart of Edinburgh’s Exchange District and beside National Cycle Route 2, the redevelopment has placed a major emphasis on the provision for cyclists with secure storage and extensive new showers.
Craig Watson, Director at JLL in Scotland said: “One Lochrin Square’s owners have seized the opportunity to reposition the property within Edinburgh’s changing business landscape by providing an open plan finish which has never been speculatively delivered before in the city. With 30 per cent of Edinburgh office space take-up so far in 2016 accounted for by the TMT sector, followed closely by Professional Services with only 21 per cent of the market, this refurbishment will ensure that the property stands out from the competition and appeals to some of Edinburgh’s younger and more dynamic sectors such as TMT. Edinburgh’s commercial property market is faced with a severe shortage of city centre Grade A stock over the next 12 months so the building is well placed to take advantage of any larger occupier requirements.”
Toby Withall, Partner at Knight Frank said: “A refurbished One Lochrin Square of approximately 63,000 sq ft will provide an occupier with the only refurbished Grade A office building with its own front door in central Edinburgh. In the context of a market where new or refurbished Grade A product is fast diminishing and occupier interest is increasing, One Lochrin Square is set to benefit and ensure there is prime stock for the more diverse range of active occupiers in the Edinburgh market.”
