CBRE: offices and alternative sectors dominated Scotland’s Q1 transaction volumes

By James Wallace - Monday, April 09, 2018 11:15

Investment in Scottish commercial property in the first quarter of 2018 reached £608m, according to CBRE Scotland, significantly ahead of the five-year average of £546m.

The quarter was led by a smaller number of high value deals with the total achieved across 28 transactions, compared with the five-year average of 44 deals. The office and alternative sectors dominated the quarter, representing over 80% of transaction levels.

Alistair Wright, associate director at CBRE Scotland, commented: “This strong quarter performance was dominated by deals which fell over from 2017. Notable transactions include the acquisition of the Aker Campus in Aberdeen (£112.5m), the Waldorf Astoria in Edinburgh (£85m) and Westway Park in Renfrew (£40m).

“Interestingly, retail investment volumes are relatively low with £41m (across seven deals) traded in Q1 – in comparison the same quarters in the last three years saw an average of over £135m traded.

“Sentiment remains strong for prime products. There is a healthy cocktail of investor appetite from across UK institutions and international capital. Moving in to Q2 we don’t expect a deluge of new product, so stock levels will remain challenging however appetite is expected to remain strong.”

James Wallace is a freelance consultant and can be reached via Linkedin or email:

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