Jim Smith

Smith Milligan

IN August, a detailed survey of the Aberdeen commercial property

market undertaken by city chartered surveyors Smith Milligan revealed

that there was, at that time, 705,434 sq.ft of industrial space for let

in the city, with a similar amount available for sale; while office

accommodation on the market comprised 533,453 sq.ft for let and a

further 184,768 sq.ft for sale.

Since then, however, the picture has changed somewhat. As far as

industrial space for let is concerned, the total has now risen to

871,319 sq.ft, with the most noticeable additions being the Baker

International building at Altens (36,000 sq.ft) and Crombie Lodge

(13,950 sq.ft), a B1-style development at Aberdeen Science and

Technology Park. Asking rental for the Baker International property is

#150,000, while the hi-tech space at the Science Park is priced at #10

per square foot.

Industrial space for sale has also risen since August, to 676,137

sq.ft; the major addition being the 70,000 sq.ft Conoco complex at Dyce

on 13 acres, with a price tag of #3m. However, the SVL car dealership

properties in the city centre are all under offer and once sold will

eliminate 82,000 sq.ft from the total.

Less movement has been noted on the office front, where very little

has changed since August. The Grampian Health Board properties in Albyn

Place and Queen's Road are now under offer, accounting for 36,187 sq.ft

of the space for sale. The market is waiting for Loirston House --

15,250 sq.ft in Altens -- to be let, to see if the predicted figure of

#20.00 per sq.ft is going to be reached.

Worthy of note is the ground floor of the Amerada Hess building in

Altens, which extends to 13,771 sq.ft of high quality space, and is on

offer at the hoped-for #20 per sq.ft. Also, Grampian Enterprise has

completed, and offered for let, 13,239 sq.ft at its Bridge of Don

Offshore Technology Park, at #12 per sq.ft.

With Grampian Regional Council's Economic Development Department

projecting at least 25 years more prosperity for the North Sea oil and

gas industry, major service companies are tending to rationalise on one

single, larger site. One such is Italian oil major Agip, which is in the

process of relocating to a 46,000 sq.ft complex on a 4.7-acre site at

the new Wellington Road Industrial Park. This is the latest in a series

of major developments at the Park, which is being marketed by Smith

Milligan.

So what does it all mean? My analysis of the market situation is that,

for the time being, it is in limbo. We are all waiting for the

Government to decide whether or not it is going to transfer petroleum

exploration directorate jobs to Aberdeen. Despite a steady stream of

good inquiries, there is no great rush to put pen to paper and close a

deal, and no substantial letters are taking place.

John Major has a lot on his mind and the PED decision cannot be high

on his list of priorities right now. However, it is important to

Aberdeen because it would raise confidence, boost morale, and confirm

Aberdeen as a major player in the world oil market. Without the PED

catalyst, deals and demand will continue to move at the current sedate

pace.

I feel that the moving of PED jobs to Aberdeen is justified for

reasons other than simply to stimulate the local property market: Did we

in the North-east not give John Major a heavy vote of confidence by

voting in George Kynoch, resulting in a Tory gain from the Liberals?

Should we not now receive our reward in the form of the PED?