A high level of activity in the Aberdeen office market with an upsurge in recent office requirements has been reported by commercial property consultants, FG Burnett.

The Albyn Place consultancy say the increased activity points to greater optimism in the business community and signals a potential recovery in the office market at the start of 2010.

FG Burnett has been involved in more than 40 office rental or sale transactions in the last 12 months and surveyor Dan Smith believes the Granite City office sector is holding its own compared to national trends.

In the most part, headline rental levels are being maintained, albeit tenants can now expect to benefit from much more attractive incentive packages than had previously been available. However, the pragmatism of landlords and the ability to realise that there are still deals to do, has led the Aberdeen office market to continue to outperform similar markets in other UK locations.

-- Advertisement --

Offices in the prime West End office district continue to achieve rents in the mid/high £20 per sq ft and there have been a few deals done at or around £30 per sq ft. Demand also remains for modern out-of-town business park space with Westhill's Abercrombie Court continuing to generate rents of £17.50 per sq ft and prices in excess of £180 per sq ft.

Dan Smith said: "We have recently witnessed an upsurge in the volume of enquires, particularly for smaller properties and the general consensus is that the outlook for the future is positive. The local office market has so far managed to avoid a reduction in headline rental rates although there has been a notable increase in incentives offered to tenants.

"The flexible and pragmatic approach which has been adopted by the majority of our landlord clients has ensured that deals are still happening and if we can maintain that dynamic it will ensure the revival continues into 2010."

(GK/BMcC)