Aberdeen grade-A office vacancy hits record low with Harbour Energy deal
Harbour Energy has signed for around 34,000 sq ft at Prime Four Business Park in Kingswells, Aberdeen, which Knight Frank says has taken grade-A availability in the city to a record low.
The energy company has taken up the entirety of Unit 9 at Prime Four, with the rent set at £32.56 sq ft, according to data from Radius.
It is a two-storey office building arranged over four wings, with a BREEAM Very Good rating.
Harbour Energy has signed for around 34,000 sq ft at Prime Four Business Park in Kingswells, Aberdeen, which Knight Frank says has taken grade-A availability in the city to a record low.
The energy company has taken up the entirety of Unit 9 at Prime Four, with the rent set at £32.56 sq ft, according to data from Radius.
It is a two-storey office building arranged over four wings, with a BREEAM Very Good rating.
The deal marks the third letting involving a major energy company in Aberdeen in the past year.
Shell relocated to 100,000 sq ft of prime office space at the Silver Fin Building on Union Street, while BP extended its 192,000 sq ft lease at Stoneywood, the Granite City’s largest office transaction of 2023.
Knight Frank, which was involved in all three deals, said that grade-A vacancy has dropped to under 2% as a result, which is the lowest on record for Aberdeen.
It pointed to “emerging indications” that it is becoming more difficult for occupiers to secure the right property in the city, suggesting the gap between supply and demand is beginning to close.
Eric Shearer, head of office at Knight Frank Aberdeen, said: “We would like to express our gratitude to our clients and the other agents involved for getting these deals done, in what has been a difficult market.
“It has become increasingly clear in Aberdeen over the last 12 months that occupiers need to plan for the future and provide high-quality accommodation for their staff, in order to encourage them back to the office.”
Shearer added that the health of the Aberdeen commercial property market is still fundamentally tied to the price of Brent crude oil, which has trended at more than $70 (£55) per barrel for the past two years.
He said: “This is driving strong occupier demand for commercial real estate and a significant increase in deal flow since the lows of the pandemic, and that is making it more competitive for occupiers that want to secure the best space.”
“Planning ahead will be more important than it has been for some time.”
Knight Frank advised Schlumberger, the existing occupier at the space, with FG Burnett acting on behalf of Harbour Energy.
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Photo © Knight Frank
