Demand for Scottish office space ''is picking up'' - commercial mortgages

23 July 2007

The sale of a £35 million office complex in Edinburgh is indicative of a growing interest in the commercial property sector in the city, it has been advised.

The £35 million sale, made by Kilmartin to a German investment group, could represent the turning point for larger investors after a quieter spell of late, according to Jones Lang LaSalle.

The firm''s Edinburgh director, Cameron Stott, told the Scotsman that the main issues for the market at present were to do not with demand, but supply.

"In the last 12 to 18 months we have been warning people that the market is starting to come back. The concern now in the office market is of a potential shortage," Mr Stott noted.

"This is a good indicator of investment confidence in the Edinburgh office market," he added.

Research published earlier this month by Knight Frank indicated that commercial landlords were gaining control of the market once again, with office rents at their highest levels for seven years.