Dandara’s City South Business Park has reached a major milestone, with Phase 2 now fully sold and fewer than half of the final Phase 3 units remaining – marking strong momentum at one of Aberdeen’s fastest-growing commercial hubs.

Located in Portlethen, just south of Aberdeen city centre, the park is attracting a broad spectrum of occupiers and investors as demand for high-quality; flexible space continues to outpace supply. Prices start at £145,000 for 850 sq ft freehold units, tapping into renewed appetite for future-ready commercial space in well-connected locations. 

The trend mirrors wider market shifts: in the first half of 2025, Aberdeen office take-up reached 163,188 sq ft across 31 transactions matching the five-year average, while grade-A availability has dropped to its lowest level since 2014.

City South’s current phase reflects that shift. Alongside the full sell-out of Phase 2, Dandara has completed 16 sales / leases in Phase 3, with another six units under offer. Just 12 remain, with a small number of office suites including shell-and-core and move-in ready accommodation, and land plots also available.

The opening of EG Group’s ‘On The Move’ retail site, including a drive-thru unit currently under construction – has boosted visibility and traffic into the park, enhancing its appeal for occupiers. With direct access to the A90 and AWPR, the location supports long-term growth for businesses looking to expand or invest.

Claire Bathgate, Head of Sales at Dandara Aberdeen, said: “Phase 2 selling out is a clear indicator that Aberdeen’s commercial sector is on the move again. City South offers the flexibility, modern standards and value that businesses and investors are actively seeking. 

The fact interest is outpacing space, despite the broader challenges elsewhere, shows the strength of the park’s offering.”

New occupiers include Bell Group and Interocean, both of whom have taken office and business unit space – as well as Macron, Kerr Compressors, Afrimart, Protect and Shine. Porters Pharmacy has recently completed its unit handover, with a German bakery also set to open later this year. 

Several businesses have acquired additional units for investment, with growing interest in properties sold with tenants in place.

Graeme Nisbet, Managing Director at FG Burnett, commented: “This is a business park that’s responding to what the market needs – proper flexibility, strong transport links and the potential for future return. 

Whether it’s for operational use or investment, the level of activity we’re seeing at City South speaks volumes.”

Dominic Millar, Senior Surveyor at CBRE, added: “Grade-A office space in Aberdeen is becoming increasingly scarce. That scarcity, combined with rising expectations around energy standards and transport access, is shifting occupier focus to locations like City South. 

It’s no surprise we’re seeing continued demand here – it’s one of the few locations offering both quality and flexibility.”

City South continues to prioritise sales, with rental options considered, and offers opportunities in business units, office suites, and land plots. All units meet EPC A+ standards and include parking, making them attractive from both functional and sustainability perspectives.

Established in 1988, Dandara is one of the UK’s largest independent housebuilders, with a focus on delivering homes that offer real value for money without compromising on design, durability, or quality. The company has also achieved a five-star Customer Satisfaction rating in the HBF New Homes Survey for five years running.

To reflect changing needs and support a broader range of customers, Dandara has expanded from a traditional housebuilder into a triple tenure developer – offering homes for private sale, affordable housing, and private rent.

 Its ESG strategy places communities at the centre of every development, with a commitment to Net Zero carbon by 2050 and delivering at least 10% Biodiversity Net Gain across all sites.