SME office space supply ''low'' in Edinburgh - commercial mortgages

14 March 2008

Those with commercial mortgages on property in Edinburgh may find high levels of demand for it from small and medium enterprises (SMEs), according to a report.

Real estate advisor DTZ has said that the Scottish capital has a lack of grade B office space, the sort which is commonly used by SMEs, Property Week reports.

DTZ economist Richard Marsh told the magazine the situation potentially risked holding back the growth of such firms, saying: "We are at risk of losing the significant growth from SMEs because Grade B supply is drying up."

He said more small firms were enquiring about Grade A office space, which was much more expensive to hire.

While anyone with grade B property in Edinburgh in their portfolio can expect high demand, a new A grade office development is also seeing its space being taken up fast.

The former C & A building on Princess Street in the city centre is now more than half full with new firms following its conversion into offices, the Scotsman reports.