Commercial mortgages may be cheaper option than expensive Edinburgh office rents

21 December 2010

Written by Jeni Browne

Businesses in Edinburgh may want to consider taking out a commercial mortgage after it was reported that office space in the city is more expensive than in New York.

Research carried out by CB Richard Ellis found that rented space cost £44.50 per sq ft compared with £42.38 in Manhattan.

It was suggested that rising costs and the reduction in the building market has resulted in small companies struggling to find serviced offices that are reasonably priced.

Garry Clark, of the Scottish Chambers of Commerce, told the Daily Record: "Businesses in Edinburgh will no doubt get a shock to find out their rent is more than that in Manhattan."

However, he explained that "in New York, staffing costs are likely to be higher" than the UK.

The report follows news by global real estate adviser DTZ that city centre office take-up in Edinburgh almost doubled in the third quarter of 2010.

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