Trams boost West Edinburgh business parks

Edinburgh’s new tram system, which connects the city centre to Edinburgh Airport on the western edge of the Scottish capital, has boosted demand for business park office space in West Edinburgh, according to Bilfinger GVA’s latest Business Parks Report.

“While (UK-wide) business park take-up for the second half of 2015 was below the five year average, there were key areas of activity across the country, notably West Edinburgh,” said the report.

The report cited two freehold purchases totalling 85,000 square feet to JP Morgan Chase and a 31,000 square feet letting to HSBC at Lochside View, Edinburgh Park — close to the airport — as examples.

“Demand is expected to continue, as there are a number of large requirements (40,000 to 100,000 sq ft) in the West Edinburgh market,” the report continued.

“Following some substantial activity over the past few months, the market has moved from a position of oversupply in West Edinburgh to one of very limited choice for occupiers with just over 50,000 square feet actively being marketed at Edinburgh Park,” said Peter Fraser, associate director at Bilfinger GVA.

“Parabola’s plans for the remaining development land is principally focussed on residential so it’s unlikely new buildings will be delivered, especially on a speculative basis, because the rents required to support construction are significantly higher than those currently being achieved at the Park.

“That said, there are a handful of larger unsatisfied business park requirements and as a consequence of this shift in the supply verses demand dynamics, we are seeing rental growth across the out-of-town market.”

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Mark McSherry
Dalriada Media LLC sites are edited by veteran news journalist Mark McSherry, a former staff editor and reporter with Reuters, Bloomberg and major newspapers including the South China Morning Post, London's Sunday Times and The Scotsman. McSherry's journalism has also appeared in The Washington Post, The Guardian, The Independent, The New York Times, London's Evening Standard and Forbes. McSherry is also a professor of journalism and communication arts in universities and colleges in New York City. Scottish-born McSherry has an MBA from the University of Edinburgh and a Certificate in Global Affairs from New York University.