Market Information

Question 1

What are the Prime Yields In Aberdeen?

Answer 1

Offices - 10%
Industrial - 9%
Retail - 14%
Shopping Centre’s - Union Square just sold for 11% (£111m)

Question 2

What are Prime office rents in Aberdeen

Answer 2

£32.50 per square foot

Question 3

What are the West End Office Rents in Aberdeen?

Answer 3

£26.00 per square foot

Question 4

What are Prime Retail Rents in Aberdeen?

Answer 4

£40.00 per square foot (ITZA) (Historically £125)

Question 5

What are Prime Industrial Rents in Aberdeen?

Answer 5

wh - £10.00 per sq ft
off - £18.00 per sq ft
Yard - £1.50 (concrete)
Yard - £1.00 (tarmac)

Question 6

What are the Capital Values in Aberdeen?

Answer 6

Industrial
BoD - £40 - £50 per sq ft
Dyce - £60 - £80 per sq ft
Altens - £60 - £70 per sq ft
Westhill - No recent evidence
Portlethen - £40 per sq ft

West End Offices - Varies massively between £80 - £140 per sq ft (down from £300 +)

Question 7

What are Prime Yields & Rents in Glasgow?

Answer 7

Yields:
Office - 6.5%
Industrial - 6%

Rents:
Office - £38 - £39 per sq ft
Industrial - £10.00 per sq ft
Retail - £200 - 250 ITZA

Question 8

What are Prime Yields & Rents in Edinburgh?

Answer 8

Yields:
Office - 6.5%
Industrial - 6%

Rents:
Office - £43 - £45 per sq ft
Industrial - £11 per sq ft
Retail - £150 ITZA

Question 9

What are the Aberdeen vacancy rates?

Answer 9

Offices:
Grade A - 1.9% (c. 200,000 sq ft)
Total Vacancy - 22% (c. 2 million sq ft)

Industrial:
Total Availability 2.3 million sq ft
Vacancy Rate - 22%

Grade A (new builds) - 17 percent of availability (skewed by city south)
Grade A1 (best quality) - 2%
Grade B (second hand) - 31%
Grade C (needs refurb) - 50%

3% of availability is ^ 30k sheds (70,000 sq ft)
9% of availability is ^ 20-30K sheds (207,000 sq ft
15% of availability is ^10k - 20k sheds (345,000 sq ft)
37% of availability is ^3k - 10k sheds (851,000 sq ft)
36% of availability is < 3k sheds (828,000 sq ft)

Question 10

What’s the current rates situation?

Answer 10

• As of April 2023, EPR was localised (scot government gave local authorities power to set EPR) hence each authority has it’s own parameters.

“Provided the above, I would check with the local authority/colleagues to ensure that I am providing correct advice.”

• 100% relief for 6 months for industrial properties
• 50% for 3 months for other asset types followed by 10% indefinitely.

Now, it’s all over the place. Aberdeen are leading the charge by getting rid of EPR entirely from 1 April 2024, having reduced it significantly from 1 April 2023.

Question 11

What are the business Poundage Rates?

Answer 11

£51,000 &below = £0.498
£51,000 - £100,000 = £0.545
£100,000 & Above = £0.599