Aberdeen office take-up picks up during third quarter of 2024

Office take-up in Aberdeen rebounded during the third quarter of 2024 after a slow start to the year, according to new figures from Knight Frank.

The independent commercial property consultancy found that there was 118,210 sq. ft. of take-up between July and September, more than doubling the total figure for the year to date. During the first half of the year there was 91,445 sq. ft. of office deals, with 32,009 sq. ft. recorded during Q1 and 59,436 sq. ft. in Q2.

There were 21 transactions during the third quarter, with an average deal size of 5,692 sq. ft. This was also significantly up on the average of 2,049 sq. ft. across 29 transactions and 2,462 sq. ft. over 13 deals during the first two quarters – a combined average of 2,256 sq. ft.

The largest deal concluded between July and September was OEG Offshore securing 16,591 sq. ft. of space at The Stratus Building in Aberdeen Business Park, closely followed by Sword Group letting 16,460 sq. ft. at The Hill of Rubislaw.

Availability of Grade A office accommodation continued to fall in Aberdeen, as more take up, change of use to existing stock, and no new speculative developments diminished supply. The Grade A vacancy rate has remained at just 2% since the start of the year.

Matt Park, partner at Knight Frank Aberdeen, said: “After a sluggish first half of the year, the drop in interest rates and the news of GB Energy’s arrival in Aberdeen have sparked renewed activity in the city’s office market, despite the price of oil falling over the course of the third quarter.

It is notable that the size of the average deal has increased; suggesting occupiers are beginning to feel more confident about making somewhat larger commitments for the correct property.

We would hope to see more deals conclude by the end of year – particularly if interest rates continue on their downward trend. However, the oil price and government policy remain the key driver of office activity in Aberdeen and, with the oil price falling to a lower average during the third quarter, which may cause pause for thought among some decision-makers.”