Edinburgh rents ''set to climb'' commercial mortgages

15 May 2007

Office rents in Edinburgh''s commercial property market have been predicted to increase in the coming future with reports anticipating a boost in demand for prime office space.

According to the latest European Office Property Clock from Jones Lang LaSalle, achievable prime rents have already seen an increase of six per cent over the first quarter of 2007, following a sustained period of muted performance in comparison to Glasgow''s buoyant commercial property sector.

Experts predict that Edinburgh rents are set to rise to as much as £28 per square foot by the end of the year.

"If you look at available new space such as Waverley Gate and Edinburgh Quay they are quoting £28 or more and we think £28 is achievable now on significant lettings without giving abnormally large incentive packages," Alan Robertson of JLL Scotland told the Scotsman.

In addition, higher building costs have been highlighted as a key contributing factor to higher rents in the future as well as supply constraints in Scotland at large.