Office take-up in Edinburgh totalled 123,800 sq ft, down 13% on the previous quarter and 33% below the 10-year quarterly average. This was primarily due to a lack of large standalone deals, a recurring feature of the Edinburgh office market in recent quarters, which hindered take-up during Q2. The largest deal of Q2 saw the Postcode Lottery let 23,800 sq ft at Lochside Crescent to relocate their offices from the city centre.
Office vacancy increased by 52 bps to 7.3%, driven by the release of secondary space, while Grade A vacancy fell to 0.7% to remain among the lowest in the Big Nine. Nevertheless, the refurbishment of the 154,000 sq ft Roseberry House remains ongoing, with its completion in 2027 expected to significantly increase Grade A vacancy in Edinburgh.
Office prime rents remained unchanged over Q2 at £46 psf, while rent-free periods held at 10 months for a 10-year lease.