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?
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