In Aberdeen we experienced a busy first quarter for industrial and retail – secondary / neighbourhood.
The industrial market was particularly resilient given the economic impact the windfall tax continues to have on the local energy sector. It is particularly strong for detached modern units 10,000– 20,000 sq. ft that benefit from secure yards and dedicated car parking. As new build activity is constrained due to high construction costs, there are once again strong rental growth prospects for industrial properties in Aberdeen. There are some requirements in the market which will require a design and build facility to fulfil their requirements for high BREEAM and EPC ratings. These occupiers are having to commit to long term leases (15/20 years) at new rental highs for the Aberdeen market.
The office sector was more muted continuing theme from last year, however there are a couple of larger requirements in the market which could see improved take up figures for this year compared to last.
There appears to be more confidence coming through in the residential house building sector with developers actively seeking new sites because of improved sale rates, mortgage rates coming down and greater confidence in the trajectory of government policies.
